Investigating the Trans-boundary of Air Pollution Between the BRICS and Its Neighboring Countries: An Empirical Analysis

  • Ilhan OzturkEmail author
  • Usama Al-Mulali
Part of the Green Energy and Technology book series (GREEN)


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.


BRICS countries CO2 emissions Trade Urbanization Trans-boundary of air pollution 


  1. 1.
    World Bank (2014) World development indicators, Washington, DC (Online). Accessed on 21 Nov 2014. Available from:
  2. 2.
    Euromonitor international from national statistics (2014) Global market information (GIMD) (Online). Accessed on 20 Nov 2014. Available from:
  3. 3.
    Im KS, Pesaran MH, Shin Y (2003) Testing for unit roots in heterogeneous panels. J Econ 115:53–74MathSciNetCrossRefGoogle Scholar
  4. 4.
    Choi I (2001) Unit root tests for panel data. J Int Money Fin 20:249–272CrossRefGoogle Scholar
  5. 5.
    Fisher RA (1932) Statistical methods for research workers, 4th edn. Oliver & Boyd, EdinburghzbMATHGoogle Scholar
  6. 6.
    Kao C (1999) Spurious regression and residual-based tests for cointegration in panel data. J Econ 90:1–44MathSciNetCrossRefGoogle Scholar
  7. 7.
    Pedroni P (2000) Fully modified ols for heterogeneous cointegrated panels. In: Baltagi BH (eds) Nonstationary panels, panel cointegration and dynamic panels, vol 15. Elsevier, Amsterdam, pp 93–130Google Scholar
  8. 8.
    Kao C, Chiang MH (2000) On the estimation and inference of a cointegrated regression in panel data. In: Baltagi BH et al (eds) Nonstationary panels, panel cointegration and dynamic panels, 15. Elsevier, Amsterdam, pp 179–222CrossRefGoogle Scholar
  9. 9.
    Zhang XP, Cheng XM (2009) Energy consumption, carbon emissions, and economic growth in China. Ecol Econ 68:2706–2712CrossRefGoogle Scholar
  10. 10.
    Bloch H, Rafiq S, Salim R (2012) Coal consumption, CO2 emission and economic growth in China: empirical evidence and policy responses. Energy Econ 34:518–528CrossRefGoogle Scholar
  11. 11.
    Ozturk I, Uddin GS (2012) Causality among carbon emissions, energy consumption and growth in India. Econ Res 25(3):752–775Google Scholar
  12. 12.
    Yang Z, Zhao Y (2014) Energy consumption, carbon emissions, and economic growth in India: evidence from directed acyclic graphs. Econ Model 38:533–540CrossRefGoogle Scholar
  13. 13.
    Pao HT, Tsai CM (2010) CO2 emissions, energy consumption and economic growth in BRIC countries. Energy Policy 38:7850–7860CrossRefGoogle Scholar
  14. 14.
    Wang SS, Zhou DQ, Zhou P, Wang QW (2011) CO2 emissions, energy consumption and economic growth in China: a panel data analysis. Energy Policy 39:4870–4875CrossRefGoogle Scholar
  15. 15.
    Jayanthakumaran K, Verma R, Liu Y (2012) CO2 emissions, energy consumption, trade and income: a comparative analysis of China and India. Energy Policy 42:450–460CrossRefGoogle Scholar
  16. 16.
    Shahbaz M, Tiwari AK, Nasir M (2013) The effects of financial development, economic growth, coal consumption and trade openness on CO2 emissions in South Africa. Energy Policy 61:1452–1459CrossRefGoogle Scholar
  17. 17.
    Kohler M (2013) CO2 emissions, energy consumption, income and foreign trade: a South African perspective. Energy Policy 63:1042–1050CrossRefGoogle Scholar
  18. 18.
    Pao HT, Tsai CM (2011) Multivariate Granger causality between CO2 emissions, energy consumption, FDI (foreign direct investment) and GDP (gross domestic product): evidence from a panel of BRIC (Brazil, Russian Federation, India, and China) countries. Energy 36:685–693CrossRefGoogle Scholar
  19. 19.
    Pao HT, Yu HC, Yang YH (2011) Modeling the CO2 emissions, energy use, and economic growth in Russia. Energy 36:5094–5100CrossRefGoogle Scholar
  20. 20.
    Zhang B, Zhang X, Yuan X (2013) Pollutant emissions, energy consumption and economic development in China: evidence from dynamic panel data. Chin J Popul Res Environ 11:155–167Google Scholar
  21. 21.
    Jalil A, Mahmud SF (2009) Environment Kuznets curve for CO2 emissions: a cointegration analysis for China. Energy Policy 37:5167–5172CrossRefGoogle Scholar
  22. 22.
    Cowan WN, Chang T, Inglesi-Lotz R, Gupta R (2014) The nexus of electricity consumption, economic growth and CO2 emissions in the BRICS countries. Energy Policy 66:359–368CrossRefGoogle Scholar
  23. 23.
    Govindaraju VGRC, Tang CF (2013) The dynamic links between CO2 emissions, economic growth and coal consumption in China and India. Appl Energy 104:310–318CrossRefGoogle Scholar
  24. 24.
    Wang S, Fang C, Guan X, Pang B, Ma H (2014) Urbanization, energy consumption, and carbon dioxide emissions in China: a panel data analysis of China’s provinces. Appl Energy 136:738–749CrossRefGoogle Scholar
  25. 25.
    Pao HT, Tsai CM (2011) Modeling and forecasting the CO2 emissions, energy consumption, and economic growth in Brazil. Energy 36:2450–2458CrossRefGoogle Scholar
  26. 26.
    Haisheng Y, Jia J, Yongzhang Z, Shugong W (2005) The impact on environmental Kuznets curve by trade and foreign direct investment in China. Chin J Popul Res Environ 3:14–19Google Scholar
  27. 27.
    Guangyue X, Deyong S (2011) An empirical study on the environmental Kuznets curve for China’s carbon emissions: based on provincial panel data. Chin J Popul Res Environ 9:66–76Google Scholar
  28. 28.
    Llorca M, Meunié A (2009) SO2 emissions and the environmental Kuznets curve: the case of Chinese provinces. J Chin Econ Bus Stud 7:1–16CrossRefGoogle Scholar
  29. 29.
    Chang CC (2010) A multivariate causality test of carbon dioxide emissions, energy consumption and economic growth in China. Appl Energy 87:3533–3537CrossRefGoogle Scholar
  30. 30.
    Zhang YJ, Liu Z, Zhang H, Tan TD (2014) The impact of economic growth, industrial structure and urbanization on carbon emission intensity in China. Nat Hazards 73:579–595CrossRefGoogle Scholar

Copyright information

© Springer Nature Switzerland AG 2019

Authors and Affiliations

  1. 1.Faculty of Economics and Administrative SciencesCag UniversityMersinTurkey
  2. 2.Faculty of BusinessMultimedia UniversityMalaccaMalaysia

Personalised recommendations