Influence of growth and urbanization on CO2 emissions: The moderating effect of foreign direct investment on energy use in BRICS

This study analyses the relationship between foreign direct investment, economic growth, urbanization, energy use, and carbon emissions in Brazil, Russia, India, China, and South Africa (BRICS countries) between 1990 and 2014. According to the empirical results, both environmental Kuznets curve (EKC...

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Bibliographic Details
Published in:Sustainable development (Bradford, West Yorkshire, England) West Yorkshire, England), 2022-02, Vol.30 (1), p.227-240
Main Authors: Balsalobre‐Lorente, Daniel, Driha, Oana M., Halkos, George, Mishra, Shekhar
Format: Article
Language:English
Subjects:
Carbon dioxide
Carbon dioxide emissions
carbon emissions
Economic analysis
Economic development
Economic growth
EKC hypothesis
Emissions
Empirical analysis
Energy consumption
Energy efficiency
Energy usage
energy use
Environmental Kuznets curve
foreign direct investment
Foreign investment
Kuznets curve
Policy making
Pollution
pollution haven hypothesis
Sustainable development
Urbanization
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Summary:This study analyses the relationship between foreign direct investment, economic growth, urbanization, energy use, and carbon emissions in Brazil, Russia, India, China, and South Africa (BRICS countries) between 1990 and 2014. According to the empirical results, both environmental Kuznets curve (EKC) and pollution haven hypotheses (PHH) are confirmed. Urbanization contributes to reducing carbon emissions, while energy use is one of the main driving forces of ascending carbon emissions. The main advance of this paper lies in the moderating effect of foreign direct investment and energy usage on carbon emission in the case of the BRICS. The empirical results confirm a dampening impact of foreign direct investment on energy use, generating a correction in carbon emission. Thus, structural transformations are highlighted with a positive influence on energy efficiency and sustainable growth. It is expected that policymakers must promote renewable sources and boost clean foreign industries in selected host countries.
ISSN:0968-0802
1099-1719
DOI:10.1002/sd.2240