Dynamic Nexus between Technological Innovation and Building Sector Carbon Emissions in the BRICS Countries

Abstract

The greatest contribution to global CO2 emissions comes from the BRICS countries (Brazil, Russia, India, China, and South Africa). The building sector in these countries is one of the sectors that increases CO2 emissions significantly. Increasing CO2 emissions in the building sector adversely affects sustainable development. Therefore, measures to mitigate environmental damage become substantially important. Improvements in technological innovation can be among the measures considered to mitigate CO2 emissions. In this study, the effects of technological innovation on the carbon emissions caused by the building sector are examined by panel data methods for the BRICS countries in the period 1992-2018. It has been observed that there is a long-term relationship between the series. As the results of Dynamic Common Correlated Effects indicated, increased technological innovation reduces carbon emissions. This result is meaningful to encourage investments related to technological innovation.