Exploring the impact of financial development and technological innovation on green growth in BRICS

Abstract Green growth (GG), providing a safeguard from environmental degradation, is the best possible alternative for sustainable development. Financial development (FD) and technological innovation (TI) accelerate the process of GG. Therefore, the study aims to investigate the role of FD and TI in GG for Brazil, Russia, India, China, and South Africa (BRICS) countries from 1990 to 2021. The study applies the advanced panel technique- the cross-sectional autoregressive distributed lag (CS-ARDL) approach, which provides robust results against endogeneity, cross-sectional dependence, and heteroskedasticity. Empirical results identify that FD and TI have substantial contributions to enhance green growth in the short and long run. For sustainable development, FD and TI are considered important factors. The study implies that BRICS countries should take initiatives to improve financial development and enhance innovation. These results offer valuable policy recommendations for sustainable development.