This study examines the impact of climate change on electricity generation and energy consumption in BRICS and G7 countries and explores how renewable energy adoption can mitigate these impacts. Utilizing energy transition theory, the study provides a robust framework for understanding the shift from fossil fuel-based to renewable energy systems. The paper utilizes the MG ARDL, AUG MG ARDL, and PMG ARDL models to capture the heterogeneous long-run relationships while addressing cross-sectional dependence and heterogeneity. The results indicate that for the G7 countries, higher GHG emissions are associated with an increase in electricity generation and primary energy consumption. In contrast, for BRICS nations, only the PMG ARDL model identifies a positive relationship between rising GHG emissions and electricity generation, while all models indicate that higher emissions are linked to increased energy consumption. Additionally, the results for the G7 demonstrate that a higher share of renewables significantly reduces GHG emissions, a trend not observed in BRICS. The findings highlight the critical role of renewables in mitigating climate impacts and underscore the importance of tailored policy approaches to foster sustainable energy transitions.
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