Skip to main content

Advertisement

Log in

Designing hydro-energy led economic growth for pollution abatement: evidence from BRICS

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

Overutilized hydro-energy production through non-sustainable mode is detrimental for both the economy and the environment. Intermittent consumption of hydro-energy from non-sustainable production methods may induce deleterious impacts in terms of rapid pollution in the economy. This paper investigates the impacts of hydro-power consumption upon pollution for 5 BRICS countries from 1965 to 2019. Our balanced panel model shows that infrequent usages of hydro-power consumption led to more pollution over the year. This relation is also further explained by considering several macroeconomic factors, in the context of the growth scenario. Our empirical findings show that an increase in population and consequent rise in per capita income have exhibited positive impacts on pollution. Even, improved industrialized led production and investment in these economies contribute heavily towards pollution and declined environmental standards. Our results further state that intermittent usages of natural resources by population in terms of rising ecological footprint have resulted in higher emission intensity over the year. These findings underscore how rising hydro-power energy consumption has led to the rising pollution amidst the growth scenario in BRICS economies.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1

Similar content being viewed by others

Availability of data and materials

The datasets generated and/or analyzed during the current study are available in the World Development Indicators (2020) BP Statistical Review of World Energy and Global Ecological footprint database. Links: https://databank.worldbank.org/source/world-development-indicators#

Notes

  1. Renewable energy sources and climate change mitigation special report of the intergovernmental panel on climate change, Cambridge University Press.

References

  • Adebayo TS, Agboola MO, Rjoub H, Adeshola I, Agyekum EB, Kumar NM (2021) Linking economic growth urbanization and environmental degradation in China: what is the role of hydroelectricity consumption. Int J Environ Res Public Health 18(13):6975

    Article  CAS  Google Scholar 

  • Apergis N, Chang T, Gupta R, Ziramba E (2016) Hydroelectricity consumption and economic growth nexus: evidence from a panel of ten largest hydroelectricity consumers. Renew Sustain Energy Rev 62:318–325

    Article  Google Scholar 

  • Apergis N, Ozturk I (2015) Testing environmental Kuznets curve hypothesis in Asian countries. Ecol Ind 52:16–22

    Article  Google Scholar 

  • Apergis N, Payne JE (2010) Renewable energy consumption and economic growth: evidence from a panel of OECD countries. Energy Policy 38(1):656–660

    Article  Google Scholar 

  • Apergis N, Payne JE (2011) The renewable energy consumption–growth nexus in Central America. Appl Energy 88(1):343–347

    Article  Google Scholar 

  • Apergis N, Payne JE (2012) Renewable and non-renewable energy consumption-growth nexus: evidence from a panel error correction model. Energy Economics 34(3):733–738

    Article  Google Scholar 

  • Bello MO, Solarin SA, Yen YY (2021) Modelling the economic role of hydropower: evidence from bootstrap autoregressive distributed lag approach. Renewable Energy 168:76–84

    Article  Google Scholar 

  • Bhujabal P, Sethi N, Padhan PC (2021) ICT, foreign direct investment and environmental pollution in major Asia Pacific countries. Environmental Sciences and Pollution Research 28(31):42649–42669. https://doi.org/10.1007/s11356-021-13619-w

    Article  Google Scholar 

  • Bildirici M (2016) The relationship between hydropower energy consumption and economic growth. Procedia Economics and Finance 38:264–270

    Article  Google Scholar 

  • Bildirici ME (2014) Hydropower energy consumption, environmental pollution, and economic growth. The Journal of Energy and Development 40(1/2):189–208

    Google Scholar 

  • Bildirici ME (2020) Environmental pollution, hydropower and nuclear energy generation before and after catastrophe: Bathtub-Weibull curve and MS-VECM methods. Nat Res Forum 44(4):289–310

    Article  Google Scholar 

  • Bildirici ME, Gokmenoglu SM (2017) Environmental pollution, hydropower energy consumption and economic growth: evidence from G7 countries. Renew Sustain Energy Rev 75:68–85

    Article  Google Scholar 

  • BRICS Energy Report (2021), Published by The Energy Research Institute, Sept 2021.

  • Cade BS, Noon BR (2003) A gentle introduction to quantile regression for ecologists. Front Ecol Environ 1(8):412–420

    Article  Google Scholar 

  • Chandio AA, Shah MI, Sethi N, Mushtaq Z (2021) Assessing the effect of climate change and financial development on agricultural production in ASEAN-4: the role of renewable energy, institutional quality, and human capital as moderators. Environmental Sciences and Pollution Research. https://doi.org/10.1007/s11356-021-16670-9

    Article  Google Scholar 

  • Faisal F, Khan MN, Pervaiz R, Muhamad PM, Rashdan MOJ (2021) Exploring the role of fossil fuels, hydroelectricity consumption, and financial sector in ensuring sustainable economic development in the emerging economy. Environ Sci Pollut Res 28(5):5953–5965

    Article  Google Scholar 

  • Fang Y (2011) Economic welfare impacts from renewable energy consumption: the China experience. Renew Sustain Energy Rev 15(9):5120–5128

    Article  Google Scholar 

  • Giles DE (2018) Roger Koenker, Victor Chernozhukov, Huming He and Limin Peng (2017): Handbook of quantile regression. Stat Pap 59(2):849–850

    Article  Google Scholar 

  • Gunatilake, H., Wijayatunga, P., & Roland-Holst, D. (2020). Hydropower development and economic growth in Nepal. Asian Development Bank working paper, 2020, No 70.

  • Gyamfi BA, Bein MA, Bekun FV (2020) Investigating the nexus between hydroelectricity energy, renewable energy, nonrenewable energy consumption on output: evidence from E7 countries. Environ Sci Pollut Res 27(20):25327–25339

    Article  Google Scholar 

  • Haldar A, Sethi N (2021a) Effect of institutional quality and renewable energy consumption on CO2 emissions—an empirical investigation for developing countries. Environ Sci Pollut Res 28(12):15485–15503. https://doi.org/10.1007/s11356-020-11532-2

    Article  CAS  Google Scholar 

  • Haldar, A., & Sethi, N., (2021b). Environmental effects of Information and communication technology—exploring the roles of renewable energy, innovation, trade and financial development., Renewable and Sustainable Energy Reviews, Vol. 153, January 2022, pp. 111754, https://doi.org/10.1016/j.rser.2021.111754

  • Halliru AM, Loganathan N, Sethi N, Hassan AAG (2020) FDI inflows, energy consumption and economic growth: testing the pollution haven hypothesis for ECOWAS countries. Int J Green Economics 14(4):327–348. https://doi.org/10.1504/IJGE.2020.10034342

    Article  Google Scholar 

  • IEO (2016) International energy outlook. U.S. International Energy Administration, Washington, DC

  • IPCC, (2011) IPCC Special report renewable energy sources. Abu Dhabi, United Arab Emirates.

  • Katchova, A. (2013). Quantile regression. Econometrics Academy24.

  • Koenker, R., & Bassett Jr, G. (1978). Regression quantiles. Econometrica: Journal of the Econometric Society, 33–50.

  • Lau E, Tan CC, Tang CF (2016) Dynamic linkages among hydroelectricity consumption, economic growth, and carbon dioxide emission in Malaysia. Energy Sources Part B 11(11):1042–1049

    Article  CAS  Google Scholar 

  • Li Q, Cherian J, Shabbir MS, Sial MS, Li J, Mester I, Badulescu A (2021) Exploring the relationship between renewable energy sources and economic growth. The Case of SAARC Countries Energies 14(3):520

    Google Scholar 

  • Li R, Leung GC (2021) The relationship between energy prices, economic growth and renewable energy consumption: evidence from Europe. Energy Rep 7:1712–1719

    Article  Google Scholar 

  • Mark NC, Sul D (2003) Cointegration vector estimation by panel DOLS and long-run money demand. Oxford Bull Econ Stat 65(5):655–680

    Article  Google Scholar 

  • Menegaki AN (2011) Growth and renewable energy in Europe: a random effect model with evidence for neutrality hypothesis. Energy Economics 33(2):257–263

    Article  Google Scholar 

  • Menyah K, Wolde-Rufael Y (2010) CO2 emissions, nuclear energy, renewable energy and economic growth in the US. Energy Policy 38(6):2911–2915

    Article  CAS  Google Scholar 

  • Muhammad AA, Arshed N, Kousar N (2017) Renewable energy consumption and economic growth in member of OIC countries. European Online Journal of Natural and Social Sciences 6(1):111

    Google Scholar 

  • Murshed M, Alam R, Ansarin A (2021) The environmental Kuznets curve hypothesis for Bangladesh: the importance of natural gas, liquefied petroleum gas, and hydropower consumption. Environ Sci Pollut Res 28(14):17208–17227

    Article  Google Scholar 

  • Ocal O, Aslan A (2013) Renewable energy consumption–economic growth nexus in Turkey. Renew Sustain Energy Rev 28:494–499

    Article  Google Scholar 

  • Ohler A, Fetters I (2014) The causal relationship between renewable electricity generation and GDP growth: a study of energy sources. Energy Economics 43:125–139

    Article  Google Scholar 

  • Pata, U. K., & Aydin, M. (2020). Testing the EKC hypothesis for the top six hydropower energy-consuming countries: evidence from Fourier Bootstrap ARDL procedure. Journal of Cleaner Production264, 121699.

  • Pedroni, P. (2001). Fully modified OLS for heterogeneous cointegrated panels. In Nonstationary panels, panel cointegration, and dynamic panels. Emerald Group Publishing Limited.

  • Renewable energy sources and climate change mitigation special report of the intergovernmental panel on climate change, Cambridge University Press. www.ipcc.ch/site/assets/uploads/2018/03/SRREN_Full_Report-1.pdf

  • Ridzuan AR, Albani A, Latiff ARA, Razak MIM, Murshidi MH (2020) The impact of energy consumption based on fossil fuel and hydroelectricity generation towards pollution in Malaysia, Indonesia and Thailand. International Journal of Energy Economics and Policy 10(1):215

    Article  Google Scholar 

  • Sahoo, M., & Sethi N., (2021a). The dynamic impact of urbanization, structural transformation, and technological innovation on ecological footprint and PM2.5: evidence from newly industrialized countries, Environment, Development and Sustainability, https://doi.org/10.1007/s10668-021-01614-7

  • Sahoo M, Sethi N (2021b) The intermittent effects of renewable energy on ecological footprint: evidence from developing countries. Environmental Sciences and Pollution Research. https://doi.org/10.1007/s11356-021-14600-3

    Article  Google Scholar 

  • Sahoo, M., and Sethi N (2020). Impact of industrialization, urbanization and financial development on energy consumption: empirical evidence from India. J Public Affairs. 20 (3), https://doi.org/10.1002/pa.2089.

  • Sebri M, Ben-Salha O (2014) On the causal dynamics between economic growth, renewable energy consumption, CO2 emissions and trade openness: fresh evidence from BRICS countries. Renew Sustain Energy Rev 39:14–23

    Article  Google Scholar 

  • Solarin SA, Al-Mulali U, Ozturk I (2017) Validating the environmental Kuznets curve hypothesis in India and China: the role of hydroelectricity consumption. Renew Sustain Energy Rev 80:1578–1587

    Article  Google Scholar 

  • Solarin SA, Shahbaz M, Hammoudeh S (2019) Sustainable economic development in China: modelling the role of hydroelectricity consumption in a multivariate framework. Energy 168:516–531

    Article  Google Scholar 

  • Tiwari AK (2011) A structural VAR analysis of renewable energy consumption, real GDP and CO2 emissions: evidence from India. Economics Bulletin 31(2):1793–1806

    Google Scholar 

  • Tiwari AK, Olayeni RO, Chang YC, Chang T (2020) The hydroelectricity consumption and economic growth in Asian countries-evidence using an asymmetric cointegration approach. Appl Econ 52(37):3999–4017

    Article  Google Scholar 

  • Tugcu CT, Ozturk I, Aslan A (2012) Renewable and non-renewable energy consumption and economic growth relationship revisited: evidence from G7 countries. Energy Economics 34(6):1942–1950

    Article  Google Scholar 

  • Ummalla M, Samal A (2018) The impact of hydropower energy consumption on economic growth and CO2 emissions in China. Environ Sci Pollut Res 25(35):35725–35737

    Article  CAS  Google Scholar 

  • Ummalla M, Samal A, Goyari P (2019) Nexus among the hydropower energy consumption, economic growth, and CO2 emissions: evidence from BRICS countries. Environ Sci Pollut Res 26(34):35010–35022

    Article  CAS  Google Scholar 

  • Wang J, Zhang S, Zhang Q (2021) The relationship of renewable energy consumption to financial development and economic growth in China. Renewable Energy 170:897–904

    Article  Google Scholar 

  • Xia C, Wang Z (2020) The effect of fossil fuel and hydropower on carbon dioxide emissions: EKC validation with structural breaks. J Environ Eng Landsc Manag 28(1):36–47

    Article  Google Scholar 

  • Ziramba E (2013) Hydroelectricity consumption and economic growth nexus: time series experience of three African countries. Eur Sci J 9(1):85–96

    Google Scholar 

Download references

Acknowledgements

The authors are grateful to the editor, associate editor, and anonymous referees of the journal for their extremely useful suggestions for the improvement of this paper. The usual disclaimers apply.

Author information

Authors and Affiliations

Authors

Contributions

All the authors contributed to the study conception and design. Material preparation and data collection were performed by AKD and NS and analysis was performed by DPD. The first draft of the manuscript was written by DPD and AKD; and NS commented on previous versions of the manuscript. All authors read and approved the final manuscript.

Ethics declarations

Ethics approval and consent to participate

Not applicable.

Consent for publication

Not applicable.

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Ilhan Ozturk

Publisher's note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Appendix

Appendix

Tables 15, 16, and 17.

Table 15 Results of panel unit root tests
Table 16 Cross-sectional dependence (CSD)
Table 17 Panel causality test

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Dash, D.P., Dash, A.K. & Sethi, N. Designing hydro-energy led economic growth for pollution abatement: evidence from BRICS. Environ Sci Pollut Res 29, 31252–31269 (2022). https://doi.org/10.1007/s11356-021-17890-9

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-021-17890-9

Keywords

JEL Classification

Navigation