Towards climate action and UN sustainable development goals in BRICS economies: do export diversification, fiscal decentralisation and environmental innovation matter?

Abstract

Several nations across the world place a high focus on achieving carbon reduction objectives. Climate change is the most catastrophic result of human activity. Eco-innovation, export diversification, and fiscal decentralization are all viable approaches for resolving environmental concerns and achieving environmental sustainability goals. These tactics could help countries and levels of government pursue what they consider to be sustainable development. This research assesses the combined impact of export diversification, green technical innovation, and fiscal decentralization in order to accomplish the environmental sustainability goals of the BRICS countries from 1970 to 2020. The long-run dynamic equilibrium between the chosen variables is explored using the augmented mean group (AMG) approach. The results show that while the use of green technology and renewable energy improves the environment, ecological harm is aggravated by export diversification, fiscal decentralization, and economic growth. The BRICS nations should exercise caution while implementing export diversification and fiscal decentralization programs.