The relationship between economic growth, renewable and nonrenewable energy use and CO2 emissions: empirical evidences for Brazil

This article examined the causal relationship between economic growth, carbon dioxide (CO2), and renewable and nonrenewable energy use for the 27 Brazilian states from 1997 to 2016. In order to achieve this objective, the system‐generalized method of moment was applied together with the autoregressive vector model for panel data. Estimates of the multivariate model established important relationships to promote public policies. Empirical results show that there is a two‐way relationship between economic growth and CO2 emissions. While growth negatively causes CO2 emissions, the impact of CO2 emissions on economic growth is positive. Additionally, the degree of using nonrenewable energy has a positive effect on economic growth and CO2 emissions. On the other hand, renewable energy use positively affects economic growth and negatively affects CO2 emissions. Also, economic growth positively causes the use of energies derived from renewable and nonrenewable sources. Finally, as expected, CO2 emissions do not affect energy use. © 2021 Society of Chemical Industry and John Wiley & Sons, Ltd.