Energy Transition in the BRICS: A Comparative Assessment of the Determinants of Renewable Energy Consumption

This study examines the determinants of renewable energy consumption among BRICS countries (Brazil, Russia, India, China, South Africa, Saudi Arabia, Egypt, the United Arab Emirates, Ethiopia, Iran, and Indonesia) between 2000 and 2022. Using static (Fixed and Random Effects) and dynamic (First-Difference GMM) panel data models, the research investigates how economic, institutional, and social factors influence renewable energy transition. The results reveal structural heterogeneity within the bloc. Among the founding members, renewable energy consumption is positively associated with governance quality and trade openness, while GDP per capita exhibits a negative relationship, consistent with the Environmental Kuznets Curve hypothesis. In contrast, the new members show strong energy dependence and limited institutional capacity, with dynamic models confirming high persistence in energy consumption and weak responsiveness to economic and policy changes. Variables such as education and life expectancy were omitted in the dynamic specification due to limited temporal variation, without compromising model consistency. Diagnostic tests (Hansen, Sargan, and AR(2)) confirm the robustness of the estimates. Overall, the findings highlight the importance of strengthening institutional governance, technological innovation, and intra-bloc cooperation to advance energy transition and achieve sustainable development across the BRICS economies.