Unpacking the socio-economic determinants of carbon emissions in BRICS-T economies: implications for environmental sustainability

Purpose This article analyses environmental sustainability facing BRICS-T economies and explores the connection between CO2 emission and the main socio-economic factors: URB, FG, NRC, GDP, GG and RDE. The objective of the study is to learn more about how these dimensions influence carbon footprints as well as sustainable development paths. Design/methodology/approach In this study, advanced econometric methods are utilized, including CS-ARDL, FMOLS and CCR using the data from 1990 to 2024 collected from the KOFG index and the World Development Indicators. These are exploited to investigate fast dynamics and long-term correlation with high credibility. Findings Urbanization is revealed to significantly enhance carbon emissions primarily due to increased energy consumption and industrial activities, evidence of the need for sustainable urban development. There is a twofold effect of financial globalization: the first being the cleaner-technologies effect and, on the other hand, the industrial expansion–emissions relationship attributed to industrialization. Utilization of natural resources contributes to carbon emissions, highlighting the significance of sustainable use of our resources. The growth is consistent with the Environmental Kuznets Curve, according to which emissions rise initially, but at higher income levels their pace slows down. Successful extremity regulation (with strict governance) supports less-emitting technology (due to higher R&D expenditure), completed by ever-stricter regulatory conditions. Practical implications The results of our analysis offer significant policy recommendations. We concluded that financial restructuring, better governance and R&D investments are indispensable conditions for achieving sustainable development. Policy makers are forced to trade off business expansion and environmental objectives as part of ensuring the sustainability of BRICS-T economies. Originality/value This article is the first attempt toward a multidimensional analysis of environmental sustainability in the case of BRICS-T economies, covering socio-economic, institutional and technological dimensions using relevant econometric methods. The results reveal the contingency relationship between financial globalization, governance and R&D with carbon emission reduction, offering new thoughts and policy insights for sustainable development.