Renewable and non-renewable energy consumption, economic growth and carbon emission in BRICS: Evidence from bootstrap panel causality

Abstract

Purpose

The purpose of this study is to find the causal relationship among energy consumption (renewable energy and non-renewable energy), gross domestic product (GDP) growth and carbon dioxide (CO₂) emission for Brazil, Russia, India, China and South Africa for the period of 1990-2017.

Design/methodology/approach

The study uses bootstrap Dumitrescu and Hurlin panel causality test, which accepts heterogeneity and dependency in cross-sectional units across emerging countries.

Findings

The results find unidirectional causality from GDP to CO₂ for India, China, Brazil, South Africa and no causality for Russia. The causality results from renewable energy consumption to GDP show that there is evidence of feedback hypothesis for China and Brazil, growth hypothesis for Russia, conservation hypothesis for South Africa and neutrality hypothesis for India. However, the results accept growth hypothesis for India, China, Russia, Brazil and neutrality hypothesis for South Africa. In the case of renewable energy and non-renewable energy consumption to CO₂ emission, the results find convergence in India, Russia and South Africa and divergence in China and Brazil.

Originality/value

It is the first study that investigates the part of balanced economic growth, instead of simply financial development in those economies. Numerous studies have used diverse factors such as economic development, renewable energy, non-renewable energy and CO₂ emission; however, the examination has used total GDP growth rate, energy consumption and CO₂ emissions.

Citation

Banday, U.J. and Aneja, R. (2020), "Renewable and non-renewable energy consumption, economic growth and carbon emission in BRICS: Evidence from bootstrap panel causality", International Journal of Energy Sector Management, Vol. 14 No. 1, pp. 248-260. https://doi.org/10.1108/IJESM-02-2019-0007