The capital investment channel of environmental improvement: evidence from BRICS

This study focuses on the channel for improving environmental quality in Brazil, Russia, India, China and South Africa (BRICS). Hence, we interact non-renewable electricity consumption with capital investment to determine the mediating role of capital investment in the nexus between electricity cons...

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Bibliographic Details
Published in:Environment, development and sustainability development and sustainability, 2019-08, Vol.21 (4), p.1561-1582
Main Authors: Mesagan, Ekundayo P., Isola, Wakeel A., Ajide, Kazeem B.
Format: Article
Language:English
Subjects:
Capital investments
Consumption
Earth and Environmental Science
Ecology
Economic Geology
Economic Growth
Economic models
Electricity
Electricity consumption
Emissions
Environment
Environmental Economics
Environmental Kuznets curve
Environmental Management
Environmental quality
Investment
Kuznets curve
Sustainable Development
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Summary:This study focuses on the channel for improving environmental quality in Brazil, Russia, India, China and South Africa (BRICS). Hence, we interact non-renewable electricity consumption with capital investment to determine the mediating role of capital investment in the nexus between electricity consumption and carbon emission in BRICS. This study applies the fully modified and the dynamic ordinary least squares techniques to conduct this scientific enquiry, and the result suggests that electricity consumption and growth positively and significantly enhance the level of emissions, while capital investment significantly reduces the level of emissions in BRICS. Also, capital investment interacts with non-renewable electricity consumption to improve environmental quality in both approaches employed, thereby reversing the earlier increase in emissions caused by electricity consumption. In addition, we confirm the proposition of the environmental Kuznets curve in BRICS and conclude that capital investment is an important channel for improving environmental quality.
ISSN:1387-585X
1573-2975
DOI:10.1007/s10668-018-0110-6