DOI :10.26650/B/SS10.2021.013.08   IUP :10.26650/B/SS10.2021.013.08    Full Text (PDF)

C02 Emission, Energy Consumption And Economic Growth in BRICS Countries: Evidence From Cross-Section Dependence and Structural Breaks

Nilgün Çil

In the last three decades, the effects of economic activites on CO2 emissions have become a very significant topic. Several researchers have focused on energy consumption and economic growth in the context of environmental degradation, both at the national and international level. Three of the world’s top five CO2 emitters are part of the BRICS, which is a group consisting of five emerging countries. This study re-examines the relationship between energy consumption, economic growth, and CO2 emissions, as well as the Kuznets Environmental Curve (EKC) hypothesis, in the BRICS countries (i.e., Brazil, Russia, India, China, and South Africa) during the period of 1971– 2013 through a recently introduced panel cointegration technique that allows for cross-section dependence and structural breaks. The results reveal a cointegration relationship among the variables, and the long-run coefficients show that an increase in energy consumption and economic growth increases CO2 emissions. The results show that there is an inverse U-shaped relationship between economic growth and carbon dioxide emissions and confirm the validity of the Environmental Kuznets Curve hypothesis for BRICS countries.


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