Assessing the impact of foreign direct investment (FDI) and energy consumption on carbon dioxide emissions in BRIC nations

Foreign direct investment (FDI), renewable energy, and energy intensity are the environmental performance of emerging economies. Utilizing the CS-ARDL method and a panel dataset spanning 2000–2023, the study investigates the evolving drivers of CO₂ emissions across BRIC countries. Empirical evidence illustrates that FDI exacerbates emissions in the short run, reflecting its allocation to the pollution-intensive sector. However, in the long run, the diffusion of cleaner and developed production technology, FDI exerts a positive environmental effect. Conversely, although renewable energy consumption primarily increases environmental quality, its associated life-cycle emissions and energy inefficiencies contribute to higher emissions over time. Initially, energy intensity has a positive impact on CO₂ emissions in the short run and a negative impact in the long run, highlighting the importance of more energy efficiency reforms. This research emphasizes the need for policy precision that reflects the characteristics of FDI, the lifecycle impact of renewable energy policies, and reinforced energy efficiency improvements that will support emerging countries in achieving a low-carbon economy.