Global CO₂ emissions pose a serious threat of climate change for high-growth countries, requiring increased efforts to preserve the environment and meet growing economic needs through the use of renewable energies. This research significantly enhances the current literature by filling a void and differentiating between short-term and long-term impacts across economic growth, renewable energy consumption, energy intensity, and CO₂ emissions in BRIC countries from 2002 to 2019. In contrast to approaches that analyze global effects, this study’s focus on short and long-term effects offers a more dependable insight into energy and environmental research. The empirical results confirmed that the effect of economic growth on CO₂ emissions is positive both in the short and long term. Moreover, the effect of energy consumption is negative in the short term and positive in the long term. The effect of energy intensity is positive in the short term and negative in the long term. Accordingly, policy recommendations must be adopted to ensure that these economies respond to the notion of sustainable development and the relationship with the environment. BRIC countries must strengthen their industries in the long term in favor of the use of renewable energies by introducing innovation and technology. These economies face the challenge of a transition to renewable energy sources by creating a new energy and industrial sector environment that is more environmentally friendly atmosphere.

This study explores the impact of environmental degradation on public debt in the largest Southeast Asian (ASEAN-5) countries. Prior research has not examined environmental degradation as a possible determinant of public debt in the ASEAN region. As such, the primary objective is to examine key determinants of public debt, notably economic growth, trade openness, investment, and environmental degradation. Utilizing the Fully Modified Ordinary Least Squares (FMOLS) method and data from 1996 to 2021, the study reveals a negative correlation between investment and public debt. Conversely, a positive relationship exists between economic growth, environmental degradation, and public debt levels. These findings hold significant implications for policymakers seeking to craft effective economic and environmental strategies to ensure sustainable development in the ASEAN-5 region. Stronger economic growth can drive up public debt. Importantly, the study highlights the importance of tailored approaches, considering each country’s unique fiscal and developmental characteristics. Applying the Two-Gap Model enhances the understanding of these complex dynamics in shaping public debt and its relationship with environmental factors.