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Do agricultural activities induce carbon emissions? The BRICS experience
Daniel Balsalobre-Lorente1, Oana M Driha2, Festus Victor Bekun3
1Department of Political Economy and Public Finance, Economic and Business Statistics and Economic Policy, University of Castilla La Mancha, Ciudad Real, Spain. Daniel.Balsalobre@uclm.es.
The environmental Kuznets curve (EKC) hypothesis holds for BRICS nations, showing an inverted U-shape between economic growth and carbon emissions. Agriculture and energy use increase pollution, while mobile use decreases it.
Area of Science:
- Environmental Economics
- Sustainable Development
- Econometrics
Background:
- The Environmental Kuznets Curve (EKC) hypothesis posits an inverted U-shaped relationship between environmental degradation and economic development.
- Understanding drivers of environmental degradation is crucial for sustainable development in emerging economies.
Purpose of the Study:
- To investigate the EKC hypothesis in Brazil, Russia, India, China, and South Africa (BRICS) from 1990-2014.
- To analyze the impact of agricultural activities, energy use, trade openness, and mobile phone penetration on carbon emissions within BRICS economies.
Main Methods:
- Utilized Dynamic Ordinary Least Squares (DOLS) and Fully Modified Ordinary Least Squares (FMOLS) for long-run regression analysis.
- Employed time-series data spanning 1990-2014 for the selected BRICS countries.
Main Results:
- Confirmed an inverted U-shaped relationship between economic growth and carbon emissions, supporting the EKC hypothesis for BRICS.
- Identified agriculture, electricity consumption, and trade openness as significant contributors to environmental degradation.
- Found that mobile phone usage has a pollution-reducing effect.
- Revealed a synergistic negative impact on the environment from the interaction between electricity consumption and agricultural activities.
Conclusions:
- The EKC hypothesis is empirically supported in BRICS countries.
- Policy recommendations include promoting cleaner energy sources and attracting high-tech, environmentally friendly foreign investment.
- Addressing the combined impact of energy consumption and agriculture is critical for mitigating environmental degradation in the region.
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