Renewable energy resources, natural resources volatility and economic performance: Evidence from BRICS

This study analyzed the nexus of natural resources volatility, carbon emissions, renewable energy resources, and economic performance in Brazil, Russia, India, China and South Africa over the period 1990-2020. For empirical investigation, the panel estimations are used which reveals that all these variables are stationary with mixed order of integration. While the Westerlund test confirms that these variables are cointegrated. Due to non normality behavior of the data, panel quantile regression is employed that demonstrate that renewable energy resources and carbon emissions are positively associated with the region's economic performance, whereas carbon emission is found a prominent factor of economic performance than renewable energy resources. Moreover, natural resources volatility is also a crucial factor of economic performance. The results asserted that natural gas rents and coal rents are positively associated with economic performance, while oil rents are insignificant. Moreover, the study found unidirectional causal nexus running from renewable energy to economic performance, and bidirectional causality between carbon emissions and economic performance, oil rents and economic performance, natural gas rents and economic performance. However, no causal association is evident in the coal rents and economic performance. Based on the empirical results, policy suggestions are also provided for sustainable economic performance.