Economic growth and CO2 emissions in the BRICS: empirical evidence from a panel cointegration analysis.
CO2 emissions. Environmental Kuznets Curve. BRICS. Cointegration in panel.
What has become known as climate change is the phenomenon of "greenhouse effect" expansion, caused mainly by the increase of the concentration of carbon dioxide (CO2) in the atmosphere. The production and release of this gas are closely linked to economic activities, such as the burning of fossil fuels by industries and motor vehicles, which lead to urban air pollution. In recent years, the world's largest emitter of CO2 has been the BRICS group of emerging countries comprising Brazil, Russia, India, China and South Africa, which accounted for more than 40% of world emissions by 2013 (EIA, 2016). In analytical terms, the study of the relationship between economic growth and pollutant emissions has been made on the basis of the Environmental Kuznets Curve (EKC) approach, which implies the existence of a relationship in the form of an inverted "U" between pollution and income. Thus, as income reaches a certain level, emissions of pollutants begin to decline, leading to an improvement in environmental quality. In this sense, the general objective of this research is to verify if there is a EKC for the BRICS group of countries. In addition to GDP per capita, four more variables will be added to the model: per capita energy consumption, population density, trade flow and a dummy to capture the effects of the Kyoto Protocol on the level of emissions from these countries. To achieve its main objective, the paper will use the econometric methodology of cointegration in panel data. Thus, it is expected that the results found may elucidate the relationship between economic growth and CO2 emissions, providing a basis for the elaboration of public policies to mitigate this pollutant.