Empirical Study on CO<sub>2</sub> Emissions, Financial Development and Economic Growth of the BRICS Countries
This paper empirically examined relevant data on BRICS CO<sub>2</sub> emissions, financial development, and economic growth in the past 40 years, and analyzed the correlation between them. Using the cointegration test, it found that there is a clear correlation between the variables in C...
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| Main Authors: | , , , , |
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| Format: | article |
| Language: | EN |
| Published: |
MDPI AG
2021
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| Subjects: | |
| Online Access: | https://doaj.org/article/5a0dbcf33c6148bcabb5d372b5319ce1 |
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| Summary: | This paper empirically examined relevant data on BRICS CO<sub>2</sub> emissions, financial development, and economic growth in the past 40 years, and analyzed the correlation between them. Using the cointegration test, it found that there is a clear correlation between the variables in China and South Africa, which show that there is a two-way relationship between CO<sub>2</sub> emissions, financial development, and economic growth in both countries. Using the quantile regression method in the analysis, the results demonstrated that at the 0.6th quartile, South Africa’s financial development had a negative impact on CO<sub>2</sub> emissions, while Brazil’s CO<sub>2</sub> emissions had a negative impact on financial development. Economic growth was subsequently added as a control variable, and the quantile-on-quantile regression method was used to test the correlation between the financial development of the BRICS countries and their CO<sub>2</sub> emissions. Finally, based on empirical conclusions, this paper proposed that BRICS countries should focus on sustainable economic development; when government departments formulate emission-reduction policies, they must reasonably consider the relationship between financial development and emission-reduction policies. |
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