The capital investment channel of environmental improvement: evidence from BRICS

Ekundayo Mesagan, Wakeel A. Isola () and Kazeem Ajide ()
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Wakeel A. Isola: University of Lagos

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2019, vol. 21, issue 4, No 2, 1582 pages

Abstract: Abstract 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.

Keywords: Electricity consumption; Capital investment; Growth; Environmental quality (search for similar items in EconPapers)
JEL-codes: F43 Q32 Q43 Q53 (search for similar items in EconPapers)
Date: 2019
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Citations: View citations in EconPapers (19)

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DOI: 10.1007/s10668-018-0110-6

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