Econometric analysis of the relationship between renewable energy consumption and selected macroeconomic variables in Brics-T countries: Panel-sur approach with structural breaks

The growth of the global population, accelerated industrialization, and technological advancements are driving the increase in energy consumption. In order to meet the rising energy demand, the use of renewable energy sources has become an important alternative for countries to reduce energy dependence and ensure environmental sustainability. In this context, this study aims to investigate the determinants of renewable energy consumption in Brazil, Russia, India, China, South Africa, and Turkey (BRICS-T), which stand out in terms of energy consumption due to their rapidly growing economies and increasing populations. To this end, the effects of carbon dioxide emissions, economic growth, and foreign direct investment inflows on renewable energy consumption in BRICS-T countries have been analyzed using annual data from the period 1990-2020 with a structural break Panel-SUR approach. According to the empirical results, an increase in economic growth raises renewable energy consumption in Brazil, India, China, and Turkey, while it decreases renewable energy consumption in Russia and South Africa. The increase in carbon dioxide emissions only raises renewable energy consumption in Russia, while it decreases renewable energy consumption in Brazil, India, China, and Turkey. An increase in foreign direct investment inflows raises renewable energy consumption in Brazil and South Africa, while it decreases renewable energy consumption in China and Turkey. Additionally, a significant increase in renewable energy consumption was observed after 2015 in Brazil and after 2012 in India, while a statistically significant decrease in renewable energy consumption was detected after 1998 in China, after 2001 in South Africa, and after 2000 in Turkey. Each BRICS-T country adopts its own energy policies and strategies due to their different natural resources, energy infrastructures, and economic dynamics. However, for these countries to achieve their environmental and economic sustainability goals, it is crucial to develop more comprehensive and targeted policies for renewable energy sources. Increasing renewable energy investments, reducing dependence on fossil fuels, and lowering carbon emissions will contribute to minimizing their environmental impacts and ensuring the sustainability of their economic growth.