Volume 18, No. 6, 2021

The Effect Of Economic Growth, Industrialization, Urbanization And Energy Used On CO2 Emission In BRIC Countries


Nitu Moni Sut , Chandini Sonowal

Abstract

This paper analyses the impact of economic growth, industrialization, urbanization and energy used on carbon dioxide emissions in BRIC countries over the period of 1992-2014. Using the Johannsen-fisher panel cointegration test, the empirical result shows a robust cointegration relationship among the variables. It also examines the long run impact of these variables on carbon dioxide emissions. By applying panel FMOLS and panel DOLS cointegrated regression model we detect the magnitude and sign of cointegration relationship. From the empirical study we found that except economic growth all other variables positively affect the carbon dioxide emissions of the BRIC countries. Among these variables’ urbanization has the highest effect on carbon dioxide emissions. Moreover, we also analyze the long run and short run causal relationship among the variables. Here we apply panel VECM and Wald test to test the long run and short run causality respectively. The results reveal a bidirectional causality between urbanization and carbon dioxide emission in the both long run and short run, while there exists a unidirectional causality running from urbanization to economic growth, industrialization and energy used.


Pages: 1484-1494

Keywords: Economic growth, industrialization, urbanization, CO2 emission, cointegration, panel FMOLS, panel DOLS, Panel VECM.

Full Text