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Renewable and Non-Renewable Energy Consumption in BRICS: Assessing the Dynamic Linkage between Foreign Capital Inflows and Energy Consumption

Author

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  • Zhexuan Qin

    (Department of Economic Management, Yuncheng University, 1155 Fudan West Street, Yanhu District, Yuncheng 044000, China)

  • Ilhan Ozturk

    (Faculty of Economics and Administrative Sciences, Cag University, Mersin 33800, Turkey
    Department of Medical Research, China Medical University Hospital, China Medical University, Taichung 40402, Taiwan
    Department of Finance, Asia University, Taichung 41354, Taiwan)

Abstract

This study attempt to fill the research gap by figuring out the dynamic effects of foreign capital inflows effect on renewable energy and non-renewable consumption by using the time series non-linear ARDL approach for BRICS from 1991 to 2019. Non-linear ARDL estimates show that positive change in foreign capital inflows has a positive effect on renewable consumption in Brazil, India, and South Africa in long run. Also, the negative change in foreign capital inflows exhibits negatively liked with renewable energy consumption in BRICS economies, except Russia in long run. We find that positive shock in foreign capital inflows tends to increase non-renewable energy consumption in BRICS except India in the long run. Finding suggests that negative change in foreign capital inflows has negative impacts on non-renewable energy consumption in India and Brazil, while the positive effect in only China in the long run.

Suggested Citation

  • Zhexuan Qin & Ilhan Ozturk, 2021. "Renewable and Non-Renewable Energy Consumption in BRICS: Assessing the Dynamic Linkage between Foreign Capital Inflows and Energy Consumption," Energies, MDPI, vol. 14(10), pages 1-17, May.
    • Handle: RePEc:gam:jeners:v:14:y:2021:i:10:p:2974-:d:558891
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