The impact of industrial practice on carbon emissions in the BRICS: a panel quantile regression analysis

Abstract

Considering the heterogeneous effect of industrial practice on carbon emissions in carbon emitting countries it is imperative to devise effectual policies that address natural environmental concerns. More so, industrial practice appears to be a major contributor of emissions and exercises a significant role in global warming and climate change. This study suggests a panel quantile regression approach to determine the effect of industrial practice on carbon emissions in the BRICS based on data from 1992 to 2014. The empirical findings demonstrate that industrial practice shows varied significant negative (10th and 20th quantile) and positive (30th, 40th and 50th) links respectively with carbon emissions in the lower carbon emitting countries. On the other hand, that relationship was significantly positive for higher emission countries. Secondly, an inverted U-shaped environmental Kuznet curve (EKC) involving industrial practice and carbon emissions was overwhelmingly found to exist in both lower and higher carbon emitting countries. As well, industrial practice was ascertained to have both direct and indirect effects (which was positive in most cases) through its role on per capita income. The overall analysis indicates that current industrial practices within BRICS have the potential to continue causing more environmental damage.