Green investment, renewable energy capacity and climate policy: An econometric analysis of sustainable development in Brazil, Canada, China and India (2005–2023)

Abstract

PURPOSE: This study analyses how green investment, renewable energy capacity and climate policy influence gross domestic product (GDP), employment and CO₂ emissions in Brazil, Canada, China and India (2005–2023). DESIGN/METHODOLOGY/APPROACH: A deductive explanatory strategy is utilised. Autoregressive integrated moving average and system generalised method of moments are applied to annual panel data to estimate the short- and long-run effects. FINDINGS: Renewable energy investment increases GDP and the short-run effect is negative. Climate policy is growth friendly but has limited employment effects. ORIGINALITY/VALUE: New empirical evidence on growth and environmental trade-offs that can guide sustainable policy choices. PRACTICAL IMPLICATIONS: Green investment and policy can foster growth despite transitioning difficulties. Governments need to assist in clean energy transitions without hurting employment.