Abstract:
In the contemporary era of digitalization, innovating technologies is deemed appropriate for promoting socioeconomic development while enhancing environmental welfare in tandem. Hence, considering the paramount importance of technological innovation for restoring the lost environmental well-being, this study aims to check how different environmental innovations, in the presence of good democratic governance, affect environmental quality across the BRICS. Using a novel composite environmental quality index, based on data concerning different carbon emission-related indicators, it is found that environmental innovations impose equivocal (both favorable and unfavorable) repercussions on the environment. Notably, the results endorse that climate change mitigation-related innovations improve environmental conditions while more environmental management-related innovations exert environmental quality-inhibiting impacts. Besides, the results certify that good democratic governance directly enhances environmental quality and indirectly exerts moderating and mediating effects for improving environmental conditions jointly with environmental innovations. Furthermore, influx of foreign direct investment and urbanization are identified as major environmental condition-deteriorating factors for the BRICS. Accordingly, the concerned governments need to emphasize the adoption of relevant policies that can simultaneously stimulate environmental innovations, establish good democratic governance, attract clean foreign direct investment, and make urbanization policies greener so that environmental quality can be effectively improved across the BRICS.
