Revisiting resources, cleaner energy and sustainable economic performance: the role of cleaner electricity from BRICS economies

Abstract

Since the last three decades, the natural resources and energy sector has been regarded as a substantial determinant of economic growth and prosperity. However, the literature is still contradictory and scant for BRICS economies and needs more empirical evidence for appropriate policies. This study aims to analyze the influence of natural resources and cleaner energy on economic performance in the presence of consumption expenditure. Using second-generation diagnostic, unit root, and cointegration tests, the results verify the long-run equilibrium association between the variables during 1990-2021. Due to non-linear data dispersion, the study uses the method of moment quantile regression. It concludes that both natural resources and cleaner energy have an asymmetric influence on the economic growth of these nations. The region’s significant factors of economic growth are electricity production from renewable sources and oil rents. Renewable electricity output and mineral rents adversely affect economic growth and performance. Besides, consumption expenditure is also negatively and significantly affecting economic growth. Based on the empirical outcomes, this study also suggested policies that could benefit the BRICS economic growth and performance.

Keywords:

• Natural resources
• economic performance
• cleaner energy
• renewable electricity
• oil rent
• mineral rent
• BRICS

JEL CODES:

• O44; Q32; E23; Q39; F43

Disclosure statement

No potential conflict of interest was reported by the authors.

Notes

1 Visit: World Development Indicators (WDI) at https://databank.worldbank.org/source/world-development-indicators#