Assessing the Impact of Renewable Energy Consumption on Economic Growth in BRICS Countries

Eng, Ai Wen (2026) Assessing the Impact of Renewable Energy Consumption on Economic Growth in BRICS Countries. Final Year Project (Bachelor), Tunku Abdul Rahman University of Management and Technology.

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Abstract

This study examines the impact of renewable energy consumption on economic growth in BRICS countries. The objective is to analyse how renewable energy contributes positively to GDP while supporting sustainable development. The study utilises panel data covering the period from 1996 to 2024, incorporating key variables such as renewable energy consumption, carbon emissions, labour force, and gross capital formation.The methodology applies panel econometric techniques, like unit root tests, cointegration analysis, and Panel ARDL estimation, to evaluate both short-run and long-run relationships among the variables. These methods allow for a comprehensive understanding of the dynamic interactions between renewable energy and economic growth. The empirical results indicate that renewable energy consumption has a positive and significant impact on GDP in the long run, suggesting that the transition towards cleaner energy sources supports sustainable economic growth in BRICS countries. Next, the findings highlight that capital formation and labour force contribute positively to economic growth, while carbon emissions reflect the environmental trade-offs associated with economic expansion. Overall, this study offers important policy implications by emphasising renewable energy's role in driving sustainable development. Policymakers in BRICS countries are encouraged to strengthen investment in renewable energy, promote technological innovation, and implement supportive policies to enhance long-term economic growth while maintaining environmental sustainability.