TY - GEN
T1 - Determinants of CO2 emissions in BRICs
AU - Pao, Hsiao-Tien
AU - Tsai, Chung Ming
PY - 2010/12/1
Y1 - 2010/12/1
N2 - This paper attempts to analyze the important determinants of emissions and to examines dynamic causal relationships between CO2 emissions, energy consumption, foreign direct investment (FDI) and economic growth within a panel vector error correction model for BRIC countries (Brazil, Russian Federation, India, and China) over the period 1978 - 2005, except for Russia (1992 - 2005). The energy consumption, real output and FDI variables affect emissions reaching 99.6%, 98.1 % and 97.0%, respectively. The causality results indicate that there is bidirectional strong causality between emissions and FDI. In the long-run, there are both emissionsenergy consumption and energy consumption-FDI bidirectional causalities, along with unidirectional causality from output to emissions, energy consumption and FDI, respectively. The short-run dynamics suggest unidirectional causality from energy consumption and emissions, respectively to real output. Therefore, in order to reduce emissions and not to adversely affect economic growth, the BRIC developing countries should increase their investment in infrastructure for energy efficiency and strengthen their energy conservation policies to reduce both energy demand and unnecessary waste.
AB - This paper attempts to analyze the important determinants of emissions and to examines dynamic causal relationships between CO2 emissions, energy consumption, foreign direct investment (FDI) and economic growth within a panel vector error correction model for BRIC countries (Brazil, Russian Federation, India, and China) over the period 1978 - 2005, except for Russia (1992 - 2005). The energy consumption, real output and FDI variables affect emissions reaching 99.6%, 98.1 % and 97.0%, respectively. The causality results indicate that there is bidirectional strong causality between emissions and FDI. In the long-run, there are both emissionsenergy consumption and energy consumption-FDI bidirectional causalities, along with unidirectional causality from output to emissions, energy consumption and FDI, respectively. The short-run dynamics suggest unidirectional causality from energy consumption and emissions, respectively to real output. Therefore, in order to reduce emissions and not to adversely affect economic growth, the BRIC developing countries should increase their investment in infrastructure for energy efficiency and strengthen their energy conservation policies to reduce both energy demand and unnecessary waste.
UR - http://www.scopus.com/inward/record.url?scp=79851478661&partnerID=8YFLogxK
U2 - 10.1109/ICSET.2010.5684942
DO - 10.1109/ICSET.2010.5684942
M3 - Conference contribution
AN - SCOPUS:79851478661
SN - 9781424471935
T3 - 2010 IEEE International Conference on Sustainable Energy Technologies, ICSET 2010
BT - 2010 IEEE International Conference on Sustainable Energy Technologies, ICSET 2010
Y2 - 6 December 2010 through 9 December 2010
ER -