Power Generation Sources and Carbon Dioxide Emissions in BRICS Countries: Static and Dynamic Panel Regression

Abstract

Purpose: The threat of global warming has escalated as a result of industrialization, urbanization, population growth, and lifestyle changes in Brazil, Russia, India, China, and South Africa (BRICS). The amount of electricity generated by various sources is directly influenced by their respective carbon dioxide (CO2 ) emissions. This study’s primary goal is to determine which sources are bad for the environment and which are not. Methodology: Examining the impact of different energy generation sources on CO2 emissions using data from the BRICS. To analyze the data, pooled OLS and Generalized Method of Moments (GMM) are used, as well as Quantile Regression (QR). Findings: We found that coal and gas power generation had a positive and large influence on CO2 emissions regardless of the method used. As compared to other emissions, coal-fired energy production has a more significant impact. In all regression models, hydroelectric and renewable energy generation can reduce CO2 emissions. Originality: Identifying an empirical link between CO2 emissions and energy production sources is the study’s most significant accomplishment. To obtain solid results, the paper used a combination of QR and GMM techniques. The conclusions presented in this article have important environmental policy consequences. CO2 emissions can be reduced by reducing the consumption of fossil fuels and promoting the development of alternative energy sources such as hydroelectric, wind, and solar power.