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Do Corruption and Income Inequality Play Spoilsport in The Energy Efficiency-Growth Relationship in BRICS Countries?

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  • Madhu Sehrawat

    (Member of American Economic Association (AEA))

  • Sanjay Kumar Singh

    (Indian Institute of Management Lucknow)

Abstract

The main aim of this paper is to study and assess the impact of corruption and income inequality on energy efficiency-growth relationship in Brazil-Russia-India-China-South Africa (BRICS) countries during 1996–2015 in a panel framework. The (Westerlund and Edgerton, Oxford Bulletin of Economics and Statistics 70:665–703, 2008) co-integration test reveal that long term co-integrating relationship exists between energy efficiency, income inequality, economic growth, and corruption in BRICS countries. The results of Augmented Mean Group (AMG), Mean Group (MG), and Common Correlated Effects Mean Group Estimator (CCEMG) support the claim that lower level of corruption leads to higher energy efficiency and higher income gap yields in lower energy efficiency. Additionally, renewable energy found to be an alternative strategy to boost energy efficiency without paying the environmental cost. The panel Granger causality test also highlights the importance of renewable energy by suggesting bi-directional causality between renewable energy and energy efficiency.

Suggested Citation

  • Madhu Sehrawat & Sanjay Kumar Singh, 2021. "Do Corruption and Income Inequality Play Spoilsport in The Energy Efficiency-Growth Relationship in BRICS Countries?," Journal of Quantitative Economics, Springer;The Indian Econometric Society (TIES), vol. 19(4), pages 727-746, December.
  • Handle: RePEc:spr:jqecon:v:19:y:2021:i:4:d:10.1007_s40953-021-00244-0
    DOI: 10.1007/s40953-021-00244-0
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    More about this item

    Keywords

    Energy efficiency; Income inequality; Economic growth; Corruption; Renewable energy; Panel data;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • D73 - Microeconomics - - Analysis of Collective Decision-Making - - - Bureaucracy; Administrative Processes in Public Organizations; Corruption
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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