The distinguished role of fossil fuel, alternative and nuclear energy on the environmental sustainability of Brazil: A STIRPAT analysis with ARDL approach

This study explores how energy consumption, economic growth, and environmental sustainability are interconnected in Brazil, utilizing the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) framework from 1972 to 2024. The primary goal is to examine the distinct contributions of fossil fuels, alternative energy sources, and nuclear energy to environmental outcomes. The secondary focus was to address the environmental impacts of population growth and foreign direct investment (FDI) in Brazil. This study employs the Autoregressive Distributed Lag (ARDL) method to investigate the short- and long-term elasticities of key variables. The results reveal a cointegration relationship between CO2 emissions, FDI, and energy consumption. The use of fossil fuels significantly increases CO2 emissions, whereas alternative and nuclear energy sources can mitigate environmental damage. Population exerts continuous pressure on environmental sustainability, whereas FDI primarily leads to short-term degradation. These findings suggest that transitioning to cleaner energy options may enable Brazil to achieve sustainable economic growth and reduce its dependence on fossil fuels. Policies that support alternative and nuclear energy, along with investments in emission-free energy, education, and technological innovation, are crucial for fostering environmental sustainability in Brazil.