Environmental Sustainability in BRICS Economies: The Nexus of Technology Innovation, Economic Growth, Financial Development, and Renewable Energy Consumption

Round 1

Reviewer 1 Report

Comments and Suggestions for Authors

This work looks at ecological sustainability of BRICS countries is affected by economic growth, financial development, new technologies, and renewable energy consumption with  the mediating effect of trade openness. The topic is interesting and falls into the scope with enough novelty to be published in the journal. However, before publication, some issues  should be addressed during a major revision:

1.       First and foremost, the authors should discuss about the uncertainty of their results. Uncertainty values should be added, if exists.

2.       The provided conceptual farmework in Figure 1 is not clear since some arrows are moved in the PDF file. Moreover, some explanations should be added.

3.       Is this possible a software program has been developed based on the results of your work?

4.       Discuss more about the descriptive statistics in Table 1.

5.       Figure 2 is not informative AT ALL. No legends and the scale is not good. Try to add legend and lines with dashed and use the second axis.

6.       What about the Middle East and European countries in Figure 2? Could any estimation be done based on the results of this work?

7.       Is there any other method for testing for slope heterogeneity? If any, please explain about the reason for selecting this one?

8.       Figure 3: The full names should be added to this figure. The same is about all other acronyms. For instance, what is TNN and BRICS Economies.

9.       With the reference to the definition of Nexus in the literature, how your work could be considered as a Nexus approach? Please discuss.

Author Response

Reviewer 1

Comments and Suggestions for Authors

This work looks at ecological sustainability of BRICS countries is affected by economic growth, financial development, new technologies, and renewable energy consumption with  the mediating effect of trade openness. The topic is interesting and falls into the scope with enough novelty to be published in the journal. However, before publication, some issues  should be addressed during a major revision:

1. First and foremost, the authors should discuss about the uncertainty of their results. Uncertainty values should be added, if exists.

Response: This study recognizes the inherent uncertainties related to empirical investigations and the constraints of fixed-effect models founded on static panel data. Precise uncertainty values were not established, but the uncertainties were deemed inherent. It is crucial to be honest about the limitations and robustness of our findings, which will be considered in subsequent studies.

2. The provided conceptual farmework in Figure 1 is not clear since some arrows are moved in the PDF file. Moreover, some explanations should be added.

Response: The conceptual framework has been improved for better clarity as per the reviewer's comment.

3. Is this possible a software program has been developed based on the results of your work?

Response: Yes, I am sending you the do and log file.

4. Discuss more about the descriptive statistics in Table 1.

Response: I have added it per the feedback and highlighted that part.

5. Figure 2 is not informative AT ALL. No legends and the scale is not good. Try to add legend and lines with dashed and use the second axis.

Response: Figure 2 is generated by STATA Software and shows everything.

6. What about the Middle East and European countries in Figure 2? Could any estimation be done based on the results of this work?

Response: This research is about BRICS countries.

7. Is there any other method for testing for slope heterogeneity? If any, please explain about the reason for selecting this one?

Response: The Pesaran and Yamagata (2008) test for slope heterogeneity is one of the most efficient and well-known tests to determine whether the coefficients estimated for a panel data model are homogeneous or heterogeneous in cross-sectional units. Its selection for your analysis of the BRICS countries can be justified for a few reasons. Second, the test is constructed precisely for the panel data, thus meeting the structure of your sample data, which consists of repeated observations for each of the BRICS countries from 2004 to 2023. Likewise, the Pesaran and Yamagata test is especially relevant when used on cross-sectionally dependent data, characteristic of macroeconomic data. There are relationships within countries that belong to a specific region or group of countries, such as the so-called economic block, such as the BRICS, and these interconnections pertain to the economic, political, and social relations of the countries in question. As earlier stated, this test can detect slope heterogeneity. It can, therefore, be used to reject the null hypothesis whereby all slope coefficients are equal to some particular value against an alternative hypothesis that at least one of the slope coefficients is different from the specified value. This is important to gain insight into the fluctuations of variables between the considered countries.

Moreover, the question test is founded on sound econometric theory and is also widely used in empirical research, which strengthens the reliability of your conclusions. In this case, slope heterogeneity will enable us to compare the relationship underlying technological innovation, energy consumption, financial development, economic growth, CO2 emissions, and trade openness between the BRICS countries. This understanding is necessary in the interpretation of results as well as in the formulation of the policies within the context of the different countries.

8. Figure 3: The full names should be added to this figure. The same is about all other acronyms. For instance, what is TNN and BRICS Economies.

Response: These figures are generated with STATA Software, not manually, so it is impossible to edit them manually. TNN is an abbreviation of variable Technology innovations, and BRICS economies show Brazil, Rusia, india, china and South Africa countries. I have added the abbreviations of variables in Table 1 for the reader's convenience.

9. With the reference to the definition of Nexus in the literature, how your work could be considered as a Nexus approach? Please discuss.

Response: It is the Nexus type of study as we analyze how economic growth, financial development, technological innovation and renewable energy consumption collectively impact environmental sustainability in BRICS countries. We then analyze the interconnected relationships among these factors by exploring the mediating role of trade openness. As a result, the reader learns how various changes in one area (technological innovation or financial development) affect environmental outcomes- showing us how sustainability problems and solutions are interlinked within a BRICS context.

Reviewer 2 Report

Comments and Suggestions for Authors

This research paper provides valuable insights into the environmental sustainability of BRICS nations and has the potential to contribute meaningfully to policy and practice. The study’s examination of how economic growth, financial development, renewable energy usage, and technological innovation impact environmental sustainability, with trade openness as a mediator, offers significant findings that advance our understanding of these issues in the context of BRICS countries.

However, the following comments should be addressed to improve the paper:

1- The claim of significant contribution needs to be backed by highlighting how the findings differ from or add to existing studies such as Chang et al. (2023). Specific gaps in the literature that this study addresses should be mentioned.

2- The third research question appears redundant given the first two questions. It could be rephrased or combined with the others for clarity.

3- Provide a more detailed explanation of how trade openness mediates the relationships between economic growth, financial development, renewable energy usage, technological innovation, and environmental sustainability. This will help readers understand the dynamics at play.

Author Response

Reviewer 2

 

Comments and Suggestions for Authors

This research paper provides valuable insights into the environmental sustainability of BRICS nations and has the potential to contribute meaningfully to policy and practice. The study’s examination of how economic growth, financial development, renewable energy usage, and technological innovation impact environmental sustainability, with trade openness as a mediator, offers significant findings that advance our understanding of these issues in the context of BRICS countries.

However, the following comments should be addressed to improve the paper:

1- The claim of significant contribution needs to be backed by highlighting how the findings differ from or add to existing studies such as Chang et al. (2023). Specific gaps in the literature that this study addresses should be mentioned.

Response:  Revision has been made as per the suggestion.

2- The third research question appears redundant given the first two questions. It could be rephrased or combined with the others for clarity.

Response: I have removed the third question because the second and third questions are almost similar.

3- Provide a more detailed explanation of how trade openness mediates the relationships between economic growth, financial development, renewable energy usage, technological innovation, and environmental sustainability. This will help readers understand the dynamics at play.

Response: More explanation of trade openness as a mediator has been added per the suggestion.

Reviewer 3 Report

Comments and Suggestions for Authors

In this manuscript, the author investigates the environmental sustainability of BRICS countries from 2004 to 2023. The findings indicate that the use of renewable energy, technological innovation, and financial development have significant positive impacts on environmental sustainability. However, economic growth has a significant negative impact on ecological sustainability. Additionally, trade openness plays a crucial mediating role in this context. I will consider accepting this manuscript after the following questions are addressed or clarified:

1. As an article, the section "2. Literature Review" is overly extensive and should be condensed.

2. Are there differences in the impact of various renewable energies (such as solar, wind, and hydro) on environmental sustainability?

3. Despite the findings that economic growth negatively impacts environmental sustainability, are there conditions under which the two can be compatible? What are the prerequisites for this compatibility?

Author Response

Reviewer 3

 

Comments and Suggestions for Authors

In this manuscript, the author investigates the environmental sustainability of BRICS countries from 2004 to 2023. The findings indicate that the use of renewable energy, technological innovation, and financial development have significant positive impacts on environmental sustainability. However, economic growth has a significant negative impact on ecological sustainability. Additionally, trade openness plays a crucial mediating role in this context. I will consider accepting this manuscript after the following questions are addressed or clarified:

1. As an article, the section "2. Literature Review" is overly extensive and should be condensed.

Response: As per your suggestion, changes have been made.

2. Are there differences in the impact of various renewable energies (such as solar, wind, and hydro) on environmental sustainability?

Response: We have used an index of renewable energies. We observed severe discrepancies in the environmental sustainability for our study based on the renewable energies index. Solar/ Wind / Hydro Renewables all have differing ecological footprints. Wind causes concerns about land use and wildlife; solar is relatively small and economically scalable. Hydropower can Disrupt Ecosystems and Emit Methane. Evaluations tailored to the context are critical if we want sustainable energy decisions.

3. Despite the findings that economic growth negatively impacts environmental sustainability, are there conditions under which the two can be compatible? What are the prerequisites for this compatibility?

Response: When a country grows economically, the number of industries increases and developing tasks achieved in a result, which may lead to Co2 emission, which will be responsible for low environmental quality. While economic growth can indeed inherit challenges to environmental sustainability, this work uniquely demonstrates that such compatibleness is achievable in regions emphasizing renewable energy adoption, technological innovation and sustainable development practices.

Despite the findings that economic growth negatively impacts environmental sustainability, there are conditions under which the two can be compatible. The prerequisites for this compatibility include implementing green technologies and innovations, stringent environmental regulations, and sustainable development policies. Investing in renewable energy sources and energy-efficient practices can decouple economic growth from environmental degradation. Fostering financial development prioritising green investments and encouraging trade openness that includes ecological standards in trade agreements can also contribute to this compatibility. Enhanced public awareness and corporate responsibility towards sustainability are essential to ensure that economic growth aligns with environmental sustainability.

Reviewer 4 Report

Comments and Suggestions for Authors

This study discussed the environmental sustainability in BRICS economies: The Nexus of technology innovation, economic growth, financial development, and renewable energy consumption. These findings show that the use of renewable energy sources, technological innovation, and financial development all have a significant and positive impact on environmental sustainability. Nevertheless, environmental sustainability is significantly and negatively impacted by economic growth. Furthermore, trade openness functions as a significant mediator between them. These conclusions have some practical guiding significance.

1. More confusingly, the data points in Figures 3 and 4 are too scattered to draw conclusions. It is suggested to use a variety of mathematical models to fit and find out the best scheme.

2. The "0..2349" in line 724 should be"0.2349".

3. What does the "633" in line 732 mean?

Author Response

Reviewer 4

1. More confusingly, the data points in Figures 3 and 4 are too scattered to draw conclusions. It is suggested to use a variety of mathematical models to fit and find out the best scheme.

Response: Changes are made as per the suggestions.

2. The "0..2349" in line 724 should be"0.2349".

Response: As per the instruction, revision is incorporated.

3. What does the "633" in line 732 mean?

Response: I have corrected this based on your comment.

Round 2

Reviewer 1 Report

Comments and Suggestions for Authors

Some comments have been answered while some others remain unanswered. Therefore, another “major revision” is requested:

1.       First and foremost, your comments showed that you have used some commercial software programs. It means you add some input data to a software and get the results. If so, what is the novelty of this work? Since everybody could do that. The novelty of work must be proven. Without proving the novelty, the paper could not be proceed with being accepted.

 

2.       Comment 5 of the original review: Figure 2 is not informative AT ALL. No legends and the scale is not good. Try to add legend and lines with dashed and use the second axis.

Response: Figure 2 is generated by STATA Software and shows everything.

 

This is not acceptable. You could extract data and plot it with another software program. This is not acceptable to have such graph. Very small and not informative.

 

3.       Comment 6 of the original review: What about the Middle East and European countries in Figure 2? Could any estimation be done based on the results of this work?

Response: This research is about BRICS countries.

I know this research about BRICS countries, and this is not an acceptable answer. I want you to add an estimation/prediction about the mentioned countries.

 

4.       Comment 9 of the original review: Figure 3: The full names should be added to this figure. The same is about all other acronyms. For instance, what is TNN and BRICS Economies.

Response: These figures are generated with STATA Software, not manually, so it is impossible to edit them manually. TNN is an abbreviation of variable Technology innovations, and BRICS economies show Brazil, Rusia, india, china and South Africa countries. I have added the abbreviations of variables in Table 1 for the reader's convenience.

See comment #2. You could use software programs like PlotDigitizer to capture the data or use the data in program and plot somewhere else. Such graphs are hard to read and is out of quality of MDPI journals.

Author Response

Please see the attachment

Author Response File: Author Response.docx

Reviewer 3 Report

Comments and Suggestions for Authors

Accept.

Author Response

Thanks

Round 3

Reviewer 1 Report

Comments and Suggestions for Authors

Revision has been made by considering the comments. Therefore, the paper could be recommended for publication in the journal.