Efficient natural resource rents and carbon taxes in BRICS green growth

Abstract

The growing interest in green growth techniques results from the need for nations throughout the globe to pursue sustainable development in recent decades. This study looks at the role of efficient natural resource rents in mediating the financial sector’s readiness for green development in the BRICS nations between 2000 and 2021 concerning carbon taxes. Using econometric techniques, we examine the dynamic interactions between carbon taxes and the distribution of natural resource rents in BRICS economies. Our findings show that when combined with carbon taxing measures, effective management of natural resource rents is essential for easing the transition to green development. According to the results, maximizing the use of resource rents improve the financial sector’s preparedness for sustainable growth and encourage investments in environmentally friendly projects in the BRICS nations. This research might help policymakers and investors in BRIC economies encourage green growth and address environmental challenges.