Green financing and sustainable environmental development: An empirical study of BRICS-I countries

Green financing and sustainable environmental development: An empirical study of BRICS-I countries | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Green financing and sustainable environmental development: An empirical study of BRICS-I countries Mahsa Mehrabi, Majid Sameti, Hatra voghouei, Albert Marouani This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-6959192/v1 This work is licensed under a CC BY 4.0 License Status: Posted Version 1 posted You are reading this latest preprint version Abstract This study examines the relationship between environmental policies and the Social Progress Index (SPI) in BRICS-I over the period 1994–2020. Using panel data and the FGLS method, three regression models are estimated to analyze the short- and long-term effects. Key findings show that green taxes have a positive impact on pollution reduction in the short term, but face adecline in effectiveness in the long term. Economic growth shows an inverted U-shaped relationship with CO2, with initial positive effects and a relative inversion at advanced stages, and green growth shows a U-shaped pattern with CO2. Social variables such as access to water and public health spending have the largest persistent effects on SPI, and the estimated coefficients show that in BRICS-I countries, CO2 and green taxes have the largest effects on SPI. The results also support the “resource curse” hypothesis, whereby dependence on fossil resources has persistent negative effects on SPI. The analysis of the final effects shows that the impact of green taxes on SPI varies at different levels of pollution, with the strongest effect at the lowest levels of pollution. By introducing a “TIPP” (Targeted, Integrated, Participatory and Proportional) framework for policymaking, this study shows that a smart combination of environmental policies, social investment and institutional reforms can help emerging economies achieve sustainable development. Environmental Policy Environmental Economics Sustainable finance Green financing Green taxation Sustainable environmental development Social performance CO2 emissions Full Text Additional Declarations The authors declare no competing interests. Cite Share Download PDF Status: Posted Version 1 posted You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. 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Also discoverable on Platform About Our Team In Review Editorial Policies Advisory Board Help Center Resources Author Services Accessibility API Access RSS feed Manage Cookie Preferences © Research Square 2026 | ISSN 2693-5015 (online) Privacy Policy Terms of Service Do Not Sell My Personal Information {"props":{"pageProps":{"initialData":{"identity":"rs-6959192","acceptedTermsAndConditions":true,"allowDirectSubmit":true,"archivedVersions":[],"articleType":"Research Article","associatedPublications":[],"authors":[{"id":475348044,"identity":"2b290e46-4c6e-4e4a-843a-de9cf03fdc57","order_by":0,"name":"Mahsa Mehrabi","email":"","orcid":"https://orcid.org/0009-0009-9422-9888","institution":"University of Isfahan","correspondingAuthor":false,"prefix":"","firstName":"Mahsa","middleName":"","lastName":"Mehrabi","suffix":""},{"id":475348045,"identity":"7167abe8-974e-4d43-a13d-479b273c09ac","order_by":1,"name":"Majid Sameti","email":"data:image/png;base64,iVBORw0KGgoAAAANSUhEUgAAAZAAAAAyAQMAAABI0h/eAAAABlBMVEX///8AAABVwtN+AAAACXBIWXMAAA7EAAAOxAGVKw4bAAABA0lEQVRIiWNgGAWjYHCChAM8YJqx8QGYZgaTEkRoYWNsNiBWCwMDRAsDGwFlUKDbfuDhgTd/7KL55ZvbKn78sWEwOM7A+OEHg0U+Li1mZxISDs5tS86d2cbYdrO3LY3B4DADs2QPg4RlAy4tBxISDvM2MOduOMbYdoO34TBIC4M00C8GOG05/yDhMM+f+tz9QC2Ff/78B9vyG6+WG0BbeNgO525gY2xj5mE7ANLCht+WGw9AfjmeO+NYYrO0bFsyj+RhxjbLHgN8DstJ/vDmT3Vuf/Pxhx+BQSfHd/7w4Rs/KupwagFGSgIqF5gMGhgY8GhgYGA/gE92FIyCUTAKRgEDAwBPZlfNAba7aAAAAABJRU5ErkJggg==","orcid":"https://orcid.org/0000-0002-2043-7491","institution":"University of Isfahan","correspondingAuthor":true,"prefix":"","firstName":"Majid","middleName":"","lastName":"Sameti","suffix":""},{"id":475348046,"identity":"bf2b7516-5bf9-4ff6-8b37-e21be4eaf1b1","order_by":2,"name":"Hatra voghouei","email":"","orcid":"https://orcid.org/0000-0002-9610-5346","institution":"University of UCSI","correspondingAuthor":false,"prefix":"","firstName":"Hatra","middleName":"","lastName":"voghouei","suffix":""},{"id":475348047,"identity":"9a1c098b-a12b-428e-b406-79cb43c7f2f1","order_by":3,"name":"Albert Marouani","email":"","orcid":"https://orcid.org/0009-0002-3051-2704","institution":"University Côte d'Azur","correspondingAuthor":false,"prefix":"","firstName":"Albert","middleName":"","lastName":"Marouani","suffix":""}],"badges":[],"createdAt":"2025-06-23 18:15:53","currentVersionCode":1,"declarations":{"humanSubjects":false,"vertebrateSubjects":false,"conflictsOfInterestStatement":false,"humanSubjectEthicalGuidelines":false,"humanSubjectConsent":false,"humanSubjectClinicalTrial":false,"humanSubjectCaseReport":false,"vertebrateSubjectEthicalGuidelines":false},"doi":"10.21203/rs.3.rs-6959192/v1","doiUrl":"https://doi.org/10.21203/rs.3.rs-6959192/v1","draftVersion":[],"editorialEvents":[],"editorialNote":"","failedWorkflow":false,"files":[{"id":85353321,"identity":"4cd34b1e-4a26-4abf-8ceb-5cb08b2de83f","added_by":"auto","created_at":"2025-06-25 03:40:50","extension":"pdf","order_by":1,"title":"","display":"","copyAsset":false,"role":"manuscript-pdf","size":534835,"visible":true,"origin":"","legend":"","description":"","filename":"papernew.1.pdf","url":"https://assets-eu.researchsquare.com/files/rs-6959192/v1_covered_f68dd7ef-9821-4684-9f2a-e321111a8fad.pdf"}],"financialInterests":"The authors declare no competing interests.","formattedTitle":"\u003cp\u003e\u003cstrong\u003eGreen financing and sustainable environmental development: An empirical study of BRICS-I countries\u003c/strong\u003e\u003c/p\u003e","fulltext":[],"fulltextSource":"","fullText":"","funders":[],"hasAdminPriorityOnWorkflow":false,"hasManuscriptDocX":false,"hasOptedInToPreprint":true,"hasPassedJournalQc":"","hasAnyPriority":true,"hideJournal":true,"highlight":"","institution":"University of Isfahan","isAcceptedByJournal":false,"isAuthorSuppliedPdf":true,"isDeskRejected":"","isHiddenFromSearch":false,"isInQc":false,"isInWorkflow":false,"isPdf":true,"isPdfUpToDate":true,"isWithdrawnOrRetracted":false,"journal":{"display":true,"email":"[email protected]","identity":"researchsquare","isNatureJournal":false,"hasQc":true,"allowDirectSubmit":true,"externalIdentity":"","sideBox":"","snPcode":"","submissionUrl":"/submission","title":"Research Square","twitterHandle":"researchsquare","acdcEnabled":true,"dfaEnabled":false,"editorialSystem":"","reportingPortfolio":"","inReviewEnabled":false,"inReviewRevisionsEnabled":true},"keywords":"Sustainable finance, Green financing, Green taxation, Sustainable environmental development, Social performance, CO2 emissions","lastPublishedDoi":"10.21203/rs.3.rs-6959192/v1","lastPublishedDoiUrl":"https://doi.org/10.21203/rs.3.rs-6959192/v1","license":{"name":"CC BY 4.0","url":"https://creativecommons.org/licenses/by/4.0/"},"manuscriptAbstract":"\u003cp\u003eThis study examines the relationship between environmental policies and the Social Progress Index (SPI) in BRICS-I over the period 1994\u0026ndash;2020. Using panel data and the FGLS method, three regression models are estimated to analyze the short- and long-term effects. Key findings show that green taxes have a positive impact on pollution reduction in the short term, but face adecline in effectiveness in the long term. Economic growth shows an inverted U-shaped relationship with CO2, with initial positive effects and a relative inversion at advanced stages, and green growth shows a U-shaped pattern with CO2. Social variables such as access to water and public health spending have the largest persistent effects on SPI, and the estimated coefficients show that in BRICS-I countries, CO2 and green taxes have the largest effects on SPI. The results also support the \u0026ldquo;resource curse\u0026rdquo; hypothesis, whereby dependence on fossil resources has persistent negative effects on SPI. The analysis of the final effects shows that the impact of green taxes on SPI varies at different levels of pollution, with the strongest effect at the lowest levels of pollution. 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