<p>In a context of growing global concern over environmental degradation, reconciling economic dimensions with ecological sustainability has become a central policy challenge. Therefore, understanding the causal links between economic growth, greenhouse gas emissions, and structural factors such as urbanization and energy transitions appears relevant. This study provides contemporary insights into these relationships, particularly in the context of BRICS+, the USA, and the European Union, which are significant global emitters. Specifically, by employing fixed effects panel regression, the research empirically tests the Environmental Kuznets Curve hypothesis and investigates how <InlineEquation ID="IEq1"> <InlineMediaObject> <ImageObject Color="BlackWhite" FileRef="11403_2025_457_Article_IEq1.gif" Format="GIF" Height="16" Rendition="HTML" Resolution="72" Type="Linedraw" Width="32" /> </InlineMediaObject> <EquationSource Format="TEX">${\text{CO}}_{2}$</EquationSource> <EquationSource Format="MATHML"><math> <msub> <mtext>CO</mtext> <mn>2</mn> </msub> </math></EquationSource> </InlineEquation>, <InlineEquation ID="IEq2"> <InlineMediaObject> <ImageObject Color="BlackWhite" FileRef="11403_2025_457_Article_IEq2.gif" Format="GIF" Height="16" Rendition="HTML" Resolution="72" Type="Linedraw" Width="20" /> </InlineMediaObject> <EquationSource Format="TEX">${\text{N}}_{2}$</EquationSource> <EquationSource Format="MATHML"><math> <msub> <mtext>N</mtext> <mn>2</mn> </msub> </math></EquationSource> </InlineEquation>O emissions, renewable energy, and urbanization affect the economic growth from 1991 to 2022. Results provide three key contributions. First, greenhouse gas emissions tend to increase with economic growth in emerging economies but decline as income rises, supporting the Environmental Kuznets Curve hypothesis. Second, although renewable energy is essential for long-term sustainability, its short-term contribution to economic growth remains limited. Third, urbanization supports economic expansion in developing countries, whereas in advanced economies, it is associated with slower growth. Based on the findings, the paper suggests that policymakers should implement carbon pricing mechanisms, climate-smart agricultural reforms, and grid modernization initiatives to reduce fossil fuel dependency. Moreover, promoting strategic investments in sustainable and resilient urban infrastructure is essential to optimize existing urban spaces both in developing and developed countries.</p>

The impact of greenhouse gas emissions, renewable energy, and urbanization on economic growth: panel evidence from BRICS+ and advanced economies

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2025年10月19日

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Marina Albanese,
Francesco Busato,
Claudia Ulloa Severino,
Monica Varlese

摘要

In a context of growing global concern over environmental degradation, reconciling economic dimensions with ecological sustainability has become a central policy challenge. Therefore, understanding the causal links between economic growth, greenhouse gas emissions, and structural factors such as urbanization and energy transitions appears relevant. This study provides contemporary insights into these relationships, particularly in the context of BRICS+, the USA, and the European Union, which are significant global emitters. Specifically, by employing fixed effects panel regression, the research empirically tests the Environmental Kuznets Curve hypothesis and investigates how ${\text{CO}}_{2}$ ${CO}_{2}$ , ${\text{N}}_{2}$ $N_{2}$ O emissions, renewable energy, and urbanization affect the economic growth from 1991 to 2022. Results provide three key contributions. First, greenhouse gas emissions tend to increase with economic growth in emerging economies but decline as income rises, supporting the Environmental Kuznets Curve hypothesis. Second, although renewable energy is essential for long-term sustainability, its short-term contribution to economic growth remains limited. Third, urbanization supports economic expansion in developing countries, whereas in advanced economies, it is associated with slower growth. Based on the findings, the paper suggests that policymakers should implement carbon pricing mechanisms, climate-smart agricultural reforms, and grid modernization initiatives to reduce fossil fuel dependency. Moreover, promoting strategic investments in sustainable and resilient urban infrastructure is essential to optimize existing urban spaces both in developing and developed countries.