Analyzing the Effect of Solar, Wind, Nuclear, and Total Renewable Energy Intensities on Economic Growth in BRICS

Abstract

Sustainability is the Buzz word, and so is renewable energy. Numerous studies have talked about the relationship between renewable energy intensity and economic growth. Different authors have come up with different time lags in different countries, but very few of them concentrate on the important sources of energy such as solar, wind, and nuclear. These energies are the epicenter for BRICS as there is a huge potential for development and the availability of these energies makes them adaptable for contribution to economic growth. The objective of the study is to examine the relationship between economic growth and total energy intensity pertinent to wind, solar, and nuclear energy in BRICS. The data is taken from BP statistical review and World Bank. Augmented Dickey-Fuller tests, Johansen cointegration tests, Granger Causality tests, Vector Autoregressive tests, and Impulse response function are performed on the data. The findings prove that there is only a short-term relationship, no long-term relationship among the variables for all the BRICS nations. It is a puzzling result as China and Brazil are the major countries that encourage and rank the most in renewable energy consumption.