Financial resources and renewable energy nexus: a holistic perspective

PurposeThis study aims to explore the association among financial resources, renewable energy, environmental degradation and technological innovation in BRICS economies.Design/methodology/approachTo estimate the long-run impacts between these variables, the AMG method of estimation, which incorporates cross-sectional reliance and slope homogeneity, is adopted in this research.FindingsAccording to the empirical findings, the long-run coefficients of environmental degradation and technological innovation show a statistically significant and negative impact on renewable sources of energy. Furthermore, a 1% increase in environmental degradation reduces 0.32% of renewable sources of energy in BRICS economies. Whereas only the coefficient of GDP shows a positive and statistically significant impact on renewable sources of energy, which demonstrates that a 1% increase in economic growth causes a 0.02% incline in renewable sources of energy. Therefore, strong policy recommendations are provided to encourage green energy utilization in these economies.Originality/valueThe majority of the participating nations have inexpensive labor and an abundance of resources from nature, which strengthens their appeal. Given that population growth is still quite conservative, this presents a chance for GDP per capita to expand significantly.