The Impact of Renewable Energy and Economic Complexity on Carbon Emissions in BRICS Countries under the EKC Scheme

Economic complexity makes it possible to assess the development of the countries, the relations of innovation, and the differentiation of products. The article considers the links between the hypotheses of the Kuznets environmental curve and economic complexity using panel data for the group of BRIC...

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Bibliographic Details
Published in:Energies (Basel) 2021-08, Vol.14 (16), p.4908
Main Authors: Leitão, Nuno Carlos, Balsalobre-Lorente, Daniel, Cantos-Cantos, José María
Format: Article
Language:English
Subjects:
Carbon dioxide
Climate change
Diversification
Econometrics
economic complexity
Economic development
Economic growth
Economics
Emissions
Energy
Energy consumption
Energy economics
Environmental degradation
Environmental impact
Globalization
Hypotheses
Impact analysis
innovation and climate change
Literature reviews
Longitudinal studies
panel data
Per capita
Petroleum production
Product differentiation
renewable energy
Renewable resources
Variables
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Summary:Economic complexity makes it possible to assess the development of the countries, the relations of innovation, and the differentiation of products. The article considers the links between the hypotheses of the Kuznets environmental curve and economic complexity using panel data for the group of BRICS countries (Brazil, Russia, India, China, and South Africa) from 1990 to 2015. As an econometric strategy, this study considered the panel fully modified least squares (FMOLS), panel dynamic least squares (DOLS), fixed effects (FE), and Panel Quantile Regression. The empirical results showed that economic complexity, income per capita, renewable energy, and carbon dioxide emissions are integrated with the first difference when applying the unit root test. The arguments of Pedroni and Kao cointegration tests were also used. According to these results, the variables used in this research are cointegrated in the long run. The results validated the arguments of the EKC hypothesis, i.e., the income per capita and squared income per capita are positively and negatively correlated with CO2 emissions. Moreover, economic complexity and renewable energy aim to improve environmental damage and climate change.
ISSN:1996-1073
1996-1073
DOI:10.3390/en14164908