The nexus of electricity consumption, economic growth and CO2 emissions in the BRICS countries
Wendy Cowan (),
Tsangyao Chang (),
Roula Inglesi-Lotz () and
Rangan Gupta ()
Additional contact information
Wendy Cowan: Department of Economics, University of Pretoria
No 201340, Working Papers from University of Pretoria, Department of Economics
This study reexamines the causal link between electricity consumption, economic growth and CO2 emissions in the BRICS countries (i.e., Brazil, Russia, India, China, and South Africa) for the period 1990-2010, using panel causality analysis, which accounts for dependency and heterogeneity across countries. Regarding the electricity-GDP nexus, the empirical results support evidence on the feedback hypothesis for Russia and the conservation hypothesis for South Africa. However, a neutrality hypothesis holds for Brazil, India and China, indicating neither electricity consumption nor economic growth is sensitive to each other in these three countries. Regarding the GDP-CO2 emissions nexus, a feedback hypothesis for Russia, a one-way Granger causality running from GDP to CO2 emissions in South Africa and reverse relationship from CO2 emissions to GDP in Brazil is found. There is no evidence of Granger causality between GDP and CO2 emissions in India and China. Furthermore, electricity consumption is found to Granger cause CO2 emissions in India, while there is no Granger causality between electricity consumption and CO2 emissions in Brazil, Russia, China and South Africa. Therefore, the differing results for the BRICS countries imply that policies cannot be uniformly implemented as they will have different effects in each of the BRICS countries under study.
Keywords: Electricity Consumption; Economic Growth; CO2 Emissions; BRICS Countries; Dependency and Heterogeneity; Panel Causality Test (search for similar items in EconPapers)
Pages: 27 pages
References: Add references at CitEc
Citations: View citations in EconPapers (5) Track citations by RSS feed
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Journal Article: The nexus of electricity consumption, economic growth and CO2 emissions in the BRICS countries (2014)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:pre:wpaper:201340
Access Statistics for this paper
More papers in Working Papers from University of Pretoria, Department of Economics Contact information at EDIRC.
Bibliographic data for series maintained by Rangan Gupta ().