Bridging fiscal decentralization and circular economy for sustainable energy transition: an examination of BRICS economies in highly decentralized settings

The relationship between fiscal decentralization, renewable energy, economic globalization, GDP, and energy efficiency is thoroughly examined in this paper within the framework of the BRICS countries. To decipher the intricate interplay between these key factors influencing energy efficiency, we use an empirical strategy that makes use of state-of-the-art cointegration methods and robustness tests. We confirm the presence of the environmental Kuznets curve in BRICS, illustrating that economic expansion might ultimately result in enhanced environmental results. We emphasize the significance of fiscal decentralization and renewable energy in enhancing energy efficiency while recognizing the ambivalent impact of economic globalization. The findings obtained from this research not only add to the current knowledge but also provide practical advice for policy actions targeted at fostering sustainable development and reducing environmental deterioration. Although the research focuses on BRICS, its results have potential ramifications for other growing economies globally, representing a substantial advancement toward a more sustainable and energy-efficient future.