Factors Affecting Co2 Emission in BRICS Nations: An Empirical Study

Abstract

This study investigated the factors that affect CO2 emission in BRICS nations. This research paper studies the panel data for 1990 to 2022 years and a panel model is used to establish a relationship between the variables. Co2 Emission is the dependent variable whereas the independent variables are Urbanisation, FDI net Inflow, Exports of goods and Services, Energy consumption, and share of coal in power generation.  The study uses the unit root test, and Breusch Pagan Godfrey (BPG) Heteroskedasticity Test to check the model fit for the equation, the study uses FMOLS and DOLS to check the robustness of results. The study implies that urbanisation, the Share of Coal in Power Generation, and Energy consumption per capita show a strong relationship with CO2 emission. BRICS is one of the fastest emerging groups in the world and plays a significant role in the world order, this study provides a debate on the unplanned urbanisation and share of coals in power generation that is leading to CO2 emission. The research finds a positive association between Urbanisation and the share of coal in power generation with Co2 emission. Thus, this study argues that an effective policy on coal in power generation and planned urbanisation can help to reduce Co2 emissions in emerging nations. The findings of this study can be used by policymakers, researchers, and Government bodies to form policies, this study can be used by other emerging economies to check the effect of these variables.