Do ICT trade balances and natural resources foster carbon emissions? The role of government effectiveness and green technology innovation

Abstract

BRICS economies have experienced high growth rates in their industries; however, at the same time, their environment has been severely polluted. Thus, this study, for the first time, investigates the impact of agriculture, forestry, fishing sectors, ICT goods imports and exports, government effectiveness, natural resources rents, green technology and innovation, and economic growth on carbon emissions in BRICS from 2000 to 2022. The study employs the generalized method of moment (GMM) for data analysis purposes. The results of GMM are further verified by using the generalized least square (GLS), common correlated effect mean group (CCEMG) and augmented mean group (AMG) methods. Study results show that all variables positively affect carbon emissions except government effectiveness, which has a negative effect. The findings suggest that effective government measures reduce emissions, emphasizing the importance of strong governance and regulatory frameworks to address climate change.