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Realizing carbon reduction goals is a top priority for many industrialized and developing nations worldwide. The biggest severe effect of human activities is climate change. Fiscal decentralization, and eco-innovation are possible strategies for addressing environmental issues and reaching sustainability objectives for the environment. These strategies may also assist nations and levels of government in pursuing perceived sustainable development. In order to achieve the environmental sustainability goals of the BRICS economies from 1970 to 2020, this study evaluates the combined influence of environmental innovation, and fiscal decentralization. Using the augmented mean group (AMG) method, the long-run dynamic equilibrium between the chosen variables is examined. The findings indicate that while the deployment of green technologies and renewable energy enhances green environment, fiscal decentralization, and economic growth aggravate ecological damage. Our evidence suggests that the BRICS countries should apply prudence when putting fiscal decentralization policies into place. To enhance ecological quality, authorities should promote the utilization of renewable energy sources and environmentally friendly technologies.

Striving towards environmental sustainability in the BRICS economies: the combined influence of fiscal decentralization and environmental innovation