Environmental policy and renewable energy pathways to carbon neutrality

Abstract

At present, environmental sustainability issues have drawn renewed interest and attention due to the serious climatic changes brought about by increased pollution levels. Achieving carbon neutrality is a significant step towards enhancing environmental sustainability; in this direction, BRICS nations have joined the race to meet their carbon neutrality targets. Therefore, the paper examines the effect of renewable energy utilisation and environmental technology on achieving the target of carbon neutrality from 1990 to 2022 by applying the CS-ARDL, AMG, and CCEMG approaches. Based on the analysis, the study confirms that renewable energy, environmental policy stringency and urbanisation ameliorate the carbon neutrality target by abating carbon emissions. On the contrary, energy intensity and environmental technology have impeded the carbon neutrality target by increasing carbon emissions. The findings of the causality test confirm a bidirectional causality between renewable energy, environmental technology and carbon neutrality. The study's findings suggest that the extensive use of renewable energy helps reduce CO2 emission levels, which in turn supports the target of achieving carbon neutrality. The governments and policymakers should frame strict environmental regulations, promote renewable energy and accelerate the extensive deployment of clean energy technologies to attain carbon neutrality.