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The Impact of Renewable Energy and Economic Complexity on Carbon Emissions in BRICS Countries under the EKC Scheme

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  • Nuno Carlos Leitão

    (Polytechnic Institute of Santarém, Center for Advanced Studies in Management and Economics, Évora University, 700-812 Évora, Portugal
    Center for African and Development Studies, Lisbon University, 1200-781 Lisbon, Portugal)

  • Daniel Balsalobre-Lorente

    (Department of Political Economy and Public Finance, Economic and Business Statistics and Economic Policy, University of Castilla-La Mancha, 16002 Cuenca, Spain)

  • José María Cantos-Cantos

    (Department of Political Economy and Public Finance, Economic and Business Statistics and Economic Policy, University of Castilla-La Mancha, 45002 Toledo, Spain)

Abstract

Economic complexity makes it possible to assess the development of the countries, the relations of innovation, and the differentiation of products. The article considers the links between the hypotheses of the Kuznets environmental curve and economic complexity using panel data for the group of BRICS countries (Brazil, Russia, India, China, and South Africa) from 1990 to 2015. As an econometric strategy, this study considered the panel fully modified least squares (FMOLS), panel dynamic least squares (DOLS), fixed effects (FE), and Panel Quantile Regression. The empirical results showed that economic complexity, income per capita, renewable energy, and carbon dioxide emissions are integrated with the first difference when applying the unit root test. The arguments of Pedroni and Kao cointegration tests were also used. According to these results, the variables used in this research are cointegrated in the long run. The results validated the arguments of the EKC hypothesis, i.e., the income per capita and squared income per capita are positively and negatively correlated with CO 2 emissions. Moreover, economic complexity and renewable energy aim to improve environmental damage and climate change.

Suggested Citation

  • Nuno Carlos Leitão & Daniel Balsalobre-Lorente & José María Cantos-Cantos, 2021. "The Impact of Renewable Energy and Economic Complexity on Carbon Emissions in BRICS Countries under the EKC Scheme," Energies, MDPI, vol. 14(16), pages 1-15, August.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:16:p:4908-:d:612395
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    7. Balsalobre-Lorente, Daniel & Contente dos Santos Parente, Clara & Leitão, Nuno Carlos & Cantos-Cantos, José María, 2023. "The influence of economic complexity processes and renewable energy on CO2 emissions of BRICS. What about industry 4.0?," Resources Policy, Elsevier, vol. 82(C).
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    9. Bucher, Florian & Scheu, Lucas & Schröpf, Benedikt, 2022. "Economic complexity and environmental pollution: Evidence from the former socialist transition countries," Discussion Papers 124, Friedrich-Alexander University Erlangen-Nuremberg, Chair of Labour and Regional Economics.
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