Trilemma association of energy consumption, carbon emission, and economic growth of BRICS and OECD regions: quantile reg
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RESEARCH ARTICLE
Trilemma association of energy consumption, carbon emission, and economic growth of BRICS and OECD regions: quantile regression estimation Muhammad Atif Nawaz 1 Faluk Shair 6
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& Muhammed Sajjad Hussain & Hafiz Waqas Kamran & Syed Ehsanullah & Rida Maheen &
Received: 21 September 2020 / Accepted: 23 November 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract Recent research has shown a huge impact of non-renewable energy (NRE) production on environmental health. In this context, this work analyzes the effects of GDP growth and long- and short-term consumption of renewable and non-renewable energy (RE and NRE, respectively) on carbon emission in BRICS and OECD economies. The quantile autoregressive distributed lag (QARDL) model was employed on the panel data from 1980 to 2016. Findings suggest a negative GDP-carbon emission correlation and a positive NRE-carbon emission correlation in the considered economies. Furthermore, carbon emission decreases with increase in gross capital formation, whereas trade openness does not have any significant effect on carbon emission. It has been determined that the application of the error correction method (ECM) has less effect on energy consumption as compared to the past levels and changes in energy consumption. In the long-term, a positive correlation of carbon emission and energy consumption is observed, whereas limited short-term effects of energy consumption on carbon emission are observed. Therefore, an RE-based energy production approach is recommended in the selected region for the future projects. Keywords CO2 emission . Environment . Sustainability, energy consumption . GDP growth . OECD and BRICS
Introduction Developing nations primarily rely on industrialization to meet economic targets and to improve the living standard of their citizens. In advanced and developing nations, to adopt modern production techniques, and to make industrial production
more attractive and effective, the utilization of nonrenewable resources as a source energy has increased. This has a substantial influence on per capita GDP and improves the quality of life by increasing the provision of goods. However, the efforts to increase per capita GDP through increasing the production, economies are compromising on the
Responsible Editor: Roula Inglesi-Lotz * Muhammad Atif Nawaz [email protected]
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Department of Economics, The Islamia University of Bahawalpur, Bahawalpur, Pakistan
Muhammed Sajjad Hussain [email protected]
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School of Economics, Finance and Banking, Universiti Utara Malaysia, Changlun, Malaysia
Hafiz Waqas Kamran [email protected]
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Iqra University, Karachi, Pakistan
Syed Ehsanullah [email protected]
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Tunku Puteri Intan Safinaz School of Accountancy, Universiti Utara Malaysia, Changlun, Malaysia
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Tsinghua University China, Beijing, China
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University of Shanghai for Science and Technology, Shanghai, China
Rida Maheen [email protected] Faluk Shair falak.malghani@gmail
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