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Economic Policy Uncertainty, Energy Consumption, Trade Openness and CO2 emissions: evidence from BRICS Countries

Author

Listed:
  • Mousa Gowfal Selmey Gowfal Selmey

    (Department of Economics, Faculty of Commerce, Mansoura University, Egypt)

  • Yasmeen Fakery Yaseen Elkhodary

    (Department of Economics, Faculty of Commerce, Damietta University, Egyp)

  • Elsayed Farrag Elsaid Mohamed Elsayed

    (Department of Economics, Faculty of Commerce, Damietta University, Egypt; & Faculty of Systems and Economics, Islamic University of Madinah, Saudi Arabia)

Abstract

This paper investigated the impact of economic policy uncertainty, energy consumption, and trade openness on CO2 emissions in the BRICS countries (Brazil, Russia, India, China, and South Africa) from 1991 to 2023. According to the Panel Pooled Mean Group-Autoregressive Distributed Lag Model (PMG-ARDL), economic policy uncertainty has a significant and negative impact on carbon emissions in the long run, while it has an insignificant effect in the short run. Additionally, primary energy consumption has a significant and positive impact on carbon emissions in the short and long run. Economic growth and trade openness have a positive and significant impact on carbon emissions in the long run. The panel causality test by Dumitrescu and Hurlin (2012) indicated a bidirectional relationship between CO2 and energy consumption, trade openness, and CO2, but a unidirectional causality from CO2 to economic policy uncertainty and economic growth. The study proposes making critical changes in energy policies while accounting for economic policy uncertainty; examining the various types of uncertainty and their effects to develop a climate policy based on evidence and facts and focusing on the discovery of alternative sources of clean energy.

Suggested Citation

  • Mousa Gowfal Selmey Gowfal Selmey & Yasmeen Fakery Yaseen Elkhodary & Elsayed Farrag Elsaid Mohamed Elsayed, 2024. "Economic Policy Uncertainty, Energy Consumption, Trade Openness and CO2 emissions: evidence from BRICS Countries," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 14(6), pages 554-565, November.
    • Handle: RePEc:eco:journ2:2024-06-54
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    References listed on IDEAS

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    1. Adams, Samuel & Adedoyin, Festus & Olaniran, Eniola & Bekun, Festus Victor, 2020. "Energy consumption, economic policy uncertainty and carbon emissions; causality evidence from resource rich economies," Economic Analysis and Policy, Elsevier, vol. 68(C), pages 179-190.
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    Cited by:

    1. Selmey, Mousa Gowfal & Bialy, Bassam A. El & Hassanein, Ahmed & Baker, Abdalqader Ahmed & Ali, Wael Mohamed & Aboushadi, Nagi Rashed & Alhumud, Abdullah Abdulaziz & Mohamad, Elsayed Farrag Elsaid, 2025. "Antecedents and Forecasting of Carbon Emissions Using Machine Learning Algorithms: Insights from the Top Ten Carbon-Emitting Nations," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 15(4), pages 511-524, June.
    2. Elroukh, Ahmed W., 2025. "The Asymmetric Impact of Global Uncertainty on Energy Consumption in the Gulf Cooperation Council Countries: A Panel Nonlinear Autoregressive Distributed Lag Approach," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 15(5), pages 450-455, August.
    3. Amsalu K. Addis, 2026. "The impact of renewable energy on CO2 emissions in Middle Eastern and BRICS economies," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-20, December.
    4. Selmey, Mousa Gowfal & Elbialy, Bassam A. & Mohamed, Ibrahim Abdallah Abdelraouf & Alhumud, Abdullah Abdulaziz & Sheta, Ibrahim Hamdy, 2025. "The Impact of Primary Energy Consumption, Trade Openness and Foreign Direct Investment on Economic Growth: Evidence from MENA Countries," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 15(6), pages 398-409, October.

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    JEL classification:

    • O24 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Trade Policy; Factor Movement; Foreign Exchange Policy
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics

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