IDEAS home Printed from https://ideas.repec.org/a/hyp/journl/v1y2013i4p3-27.html
   My bibliography  Save this article

A Panel Estimation of the Relationship Between Trade Liberalization, Economic Growth and CO2 Emissions in BRICS Countries

Author

Listed:
  • Mehrara Mohsen

    () (Faculty of Economics, University of Tehran, Iran)

  • Abbas ali Rezaei

    () (Organization of Finance and Economic affairs in Sistan & Balouchestan)

Abstract

In the last few years, several studies have found an inverted-U relationship between per capita income and environmental degradation. This relationship, known as the environmental Kuznets curve (EKC), suggests that environmental degradation increases in the early stages of growth, but it eventually decreases as income exceeds a threshold level. However, this paper investigation relationship between per capita CO2 emission, growth economics and trade liberalization based on econometric techniques of unit root test, co-integration and a panel data set during the period 1960-1996 for BRICS countries. Data properties were analyzed to determine their stationarity using the LLC , IPS , ADF and PP unit root tests which indicated that the series are I(1). We find a cointegration relationship between per capita CO2 emission, growth economics and trade liberalization by applying Kao panel cointegration test. The evidence indi cates that in the long-run trade liberalization has a positive significant impact on CO2 emissions and impact of trade liberalization on emissions growth depends on the level of income Our findings suggest that there is a quadratic relationship between relationship between real GDP and CO2 emissions for the region as a whole. The estimated long-run coefficients of real GDP and its square satisfy the EKC hypothesis in all of studied countries. Our estimation shows that the inflection point or optimal point real GDP per capita is about 5269.4 dollars. The results show that on average, sample countries are on the positive side of the inverted U curve. The turning points are very low in some cases and very high in other cases, hence providing poor evidence in support of the EKC hypothesis. Thus, our findings suggest that all BRICS countries need to sacrifice economic growth to decrease their emission levels

Suggested Citation

  • Mehrara Mohsen & Abbas ali Rezaei, 2013. "A Panel Estimation of the Relationship Between Trade Liberalization, Economic Growth and CO2 Emissions in BRICS Countries," Hyperion Economic Journal, Faculty of Economic Sciences, Hyperion University of Bucharest, Romania, vol. 1(4), pages 3-27, December.
  • Handle: RePEc:hyp:journl:v:1:y:2013:i:4:p:3-27
    as

    Download full text from publisher

    File URL: http://hej.hyperion.ro/articles/4%281%29_2013/HEJ%20nr4(1)_2013_A1Mehrara.pdf
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shuai, Chenyang & Shen, Liyin & Jiao, Liudan & Wu, Ya & Tan, Yongtao, 2017. "Identifying key impact factors on carbon emission: Evidences from panel and time-series data of 125 countries from 1990 to 2011," Applied Energy, Elsevier, vol. 187(C), pages 310-325.

    More about this item

    Keywords

    panel analysis; environmental Kuznets Curve; CO2 emissions; growth economic; trade liberalization;

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hyp:journl:v:1:y:2013:i:4:p:3-27. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iulian Panait). General contact details of provider: http://edirc.repec.org/data/fehypro.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.