Revisiting the nexus between electricity consumption, economic growth and environmental sustainability in the new BRICS: asymmetric panel evidence

The study revisits the energy consumption, economic growth and environmental sustainability nexus among the new BRICS countries between 1991 and 2022. Based on the expansion of BRICS and growing needs for decarbonization, it examines if the relationship between these three indicators is symmetric or asymmetric. Using second-generation panel unit root tests, asymmetric cointegration and causality models; including Driscoll–Kraay and Feasible Generalized Least Squares estimators, the results reveal strong long-run asymmetric effects. Specifically, reductions in electricity consumption significantly reduce CO2 emissions, while increases do not produce proportionate environmental harm. The findings also show that per capita income stimulates environmental quality during periods of economic boom, while foreign direct investment (FDI) has no significant influence on CO2 emissions; thus, confirming the pollution haven hypothesis in the BRICS. The study emphasizes the need to adopt regional-specific environmental-friendly policies in the BRICS.