Analysis of the Determinants of Carbon Dioxide Emissions in BRICS Countries: A Panel Dynamic Ordinary Least Square (DOLS) Estimation Approach

Abstract

Since the advent of the Industrial Revolution, a consistent goal has been the pursuit of economic growth and progress. However, this pursuit has been guided by a rise in pollution and degradation. This study investigates the correlation between environmental pollution (CO2 emissions), the utilization of renewable energy, and economic development in the BRICS countries spanning from 1992 to 2020. The study aims to understand the correlation between the increasing CO2 emissions in the BRICS nations and factors such as the labour force participation rate (LABOUR), GDP, consumption of renewable energy, and foreign direct investment (FDI). The analysis utilizes Panel Dynamic Ordinary Least Square as the estimation technique. The results reveal a substantial and enduring correlation among employment, the adoption of renewable energy (RE), and CO2 emissions in the BRICS nations. Specifically, a 1 percent rise in the labour force is linked with a 0.859 percent increase in CO2 emissions, while a 1% increase in the use of RE is connected to a 0.029 percent reduction in CO2 emissions. However, the long-runs correlation between GDP, FDI, and CO2 emissions is insignificant.