CO 2 emissions, energy consumption and economic growth in BRIC countries

Hsiao-Tien Pao*, Chung Ming Tsai

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

452 Scopus citations


This paper examines dynamic causal relationships between pollutant emissions, energy consumption and output for a panel of BRIC countries over the period 1971-2005, except for Russia (1990-2005). In long-run equilibrium energy consumption has a positive and statistically significant impact on emissions, while real output exhibits the inverted U-shape pattern associated with the Environmental Kuznets Curve (EKC) hypothesis with the threshold income of 5.393 (in logarithms). In the short term, changes in emissions are driven mostly by the error correction term and short term energy consumption shocks, as opposed to short term output shocks for each country. Short-term deviations from the long term equilibrium take from 0.770 years (Russia) to 5.848 years (Brazil) to correct. The panel causality results indicate there are energy consumption-emissions bidirectional strong causality and energy consumption-output bidirectional long-run causality, along with unidirectional both strong and short-run causalities from emissions and energy consumption, respectively, to output. Overall, in order to reduce emissions and not to adversely affect economic growth, increasing both energy supply investment and energy efficiency, and stepping up energy conservation policies to reduce unnecessary wastage of energy can be initiated for energy-dependent BRIC countries.

Original languageEnglish
Pages (from-to)7850-7860
Number of pages11
JournalEnergy Policy
Issue number12
StatePublished - 1 Dec 2010


  • BRIC
  • Carbon dioxide emission
  • Error correction model

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