Financial and Technological Drivers of Sustainable Development: The Role of Communication Technology, Financial Efficiency and Education in BRICS

A clean environment enhances well-being and drives economic growth. BRICS nations aim to cut emissions while sustaining growth, aligning with global sustainability goals. Their strong economic progress underscores the need to explore the links between communication technology, financial efficiency, education, and renewable energy consumption (RENC). Therefore, to analyze these dynamics, this study examines data spanning from 1990 to 2020 using a rigorous methodological framework. Initially, model selection was guided by AIC and BIC criteria by ensuring optimal model fit. Furthermore, multicollinearity was assessed using the Variance Inflation Factor (VIF), while heteroscedasticity and autocorrelation issues were tested through the Breusch–Pagan Test and the Ljung–Box Test, respectively. Additionally, cross-sectional dependence (CSD) was checked, followed by stationarity analysis using the second-generation CIPS. The Westerlund Cointegration Test was employed to confirm long-run relationships. As a final preliminary test, the study uses the Hausman test for selection of the appropriate model specification. Subsequently, the PMG-ARDL approach was utilized to examine both short- and long-term dynamics. The findings reveal a significant negative relationship between RENC, Gross Domestic Product (GDP), and CO2 emissions. Conversely, RENC exhibits a strong positive association with education (EDUC), information and communication technology (IACT), the financial markets efficiency index (FMEI), and the financial institutions efficiency index (FIEI). Finally, the robustness of the PMG-ARDL results was validated through advanced techniques, including Fully Modified OLS (FMOLS) and the Generalized Method of Moments (GMM), reinforcing the reliability of the findings. The study offers valuable policy recommendations to support sustainable development in BRICS nations.