How to progress towards sustainable development by leveraging renewable energy sources, technological advances, and human capital

Abstract

In analyzing the Sustainable Development Goals (SDGs), studies usually examine the environmental dimension, but developing countries must also achieve economic and social development. Against this background, this study analyzes the determinants of the Sustainable Development Index, which considers 17 different SDGs, for the BRICS (Brazil, Russia, India, China, South Africa). The study considers the disaggregated renewable energy consumption (wind, solar, and hydropower), information and communication technologies (ICT) and human capital as control variables and examines their impact on the SDGs for the period 2000–2023. Using the augmented mean group (AMG) and the novel bias-corrected method of moments (BCMM), the study seeks to answer the question of whether renewable energy, human capital or technological progress are effective on the SDGs. The AMG estimator indicate that human capital development, hydropower and ICT contribute to the achievement of the SDGs, while the use of solar and wind energy has no significant impact. The results of the BCMM confirm the results of the AMG. The study recommends that the BRICS countries invest more in ICT and human capital and move towards technologies that increase efficiency in the use of solar and wind energy as key policy options for achieving the SDGs.