ABSTRACT
CO2 is one of the crucial concerns of the global economy due to its negative environmental impact. Based on the limitations of extant studies, this research employs the STIRPAT framework to investigate the asymmetric effect of urbanization (URB), gross domestic product (GDP), and energy intensity (EINT) on carbon dioxide emissions (CO2) in Brazil from 1980–2022 using innovative econometric techniques such as Non – linear Autoregressive Distributed Lag (NARDL) and Dynamic Ordinary Least Square (DOLS). The NARDL findings are as follows: (i) The NARDL bounds test confirmed the existence of long – term association; (ii) In the long – term, a positive change in URB reduces CO2 by 8.6%, while an adverse change in URB does not affect CO2. In the case of GDP, a positive change raises CO2 by 1.73%, whereas a negative change reduces CO2 by 2.94%. For EINT, a positive change induces CO2 by 2.12%, while a negative change decreases CO2 by 3.82%; (iii) In the short – term, an adverse change in URB spurs CO2 by 0.39%. For GDP, a positive change raises CO2 by 1.73%, whereas a negative change reduces CO2 by 2.94%. Lastly, a positive EINT change drives CO2 by 2.12%; (iv) The DOLS findings confirm the NARDL results. The policy implications are discussed.
Abbreviations
BRICS | = | Brazil, Russia, India, China and South Africa |
DOLS | = | Dynamic Ordinary Least Square |
EINT | = | Energy Intensity |
EU | = | European Union |
FMOLS | = | Fully Modified Ordinary Least Square |
MENA | = | Middle Eastern and North Africa |
NARDL | = | Non – linear Autoregressive Distributed Lag |
URB | = | Urbanization |
VECM | = | Vector Error Correction Method |
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No potential conflict of interest was reported by the author(s).
Correction Statement
This article has been corrected with minor changes. These changes do not impact the academic content of the article.
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Notes on contributors
Oluwatoyin Abidemi Somoye
Oluwatoyin Abidemi Somoye is an Assistant Professor in Economics at Near East University, Nicosia, Cyprus. His research interests are in macroeconomics, energy economics, environmental economics, and developmental economics.
Huseyin Ozdeser
Huseyin Ozdeser is a Professor in Economics and the Chairman of the Department of Economics, Near East University, Nicosia, Cyprus. His research interests are in macroeconomics, political economy, energy economics, and European monetary policies.
Mehdi Seraj
Mehdi Seraj is an Associate Professor in Economics at Near East University, Nicosia, Cyprus. His research interests are in macroeconomics, exchange rates, economic development, and energy economics.
Fatma Turuc
Fatma Turuc is a Ph.D. Candidate and an instructor at Near East University, Nicosia, Cyprus. Her research interests are in macroeconomics, gender economics, and energy economics.