Investigating the trans-boundary of air pollution between the BRICS and its neighboring countries: An empirical analysis

Abstract

This study investigates whether air pollution from the BRICS countries influences air pollution of their neighboring countries for the period of 1990–2013. To realize the aim of this study, five panel models were established by utilizing CO2 emissions of each of the BRICS neighboring countries as the dependent variable and gross domestic product (GDP), electricity consumption, trade openness, urbanization, and CO2 emissions of the BRICS countries as the independent variables. Based on the Kao cointegration test results, the variables in each of the five models were cointegrated and indicating the existence of a long-run relationship. Moreover, the panel fully modified ordinary least square also revealed that electricity consumption, GDP growth, trade openness, urbanization, and CO2 emissions of the BRICS countries increase CO2 emissions of their neighboring countries in the long run. In addition, the VECM Granger causality results show the existence of a number of causal relationships between CO2 emissions of the BRICS countries and their neighboring countries’ CO2 emissions, electricity consumption, GDP growth, trade openness, and urbanization. Based on the results obtained, a number of policy recommendations are provided for the investigated countries.