Role of political risk to achieve carbon neutrality: Evidence from Brazil

Zhi-Wei Su; Muhammad Umar; Dervis Kirikkaleli; Tomiwa Sunday Adebayo

doi:10.1016/j.jenvman.2021.113463

Role of political risk to achieve carbon neutrality: Evidence from Brazil

J Environ Manage. 2021 Nov 15:298:113463. doi: 10.1016/j.jenvman.2021.113463. Epub 2021 Aug 19.

Authors

Zhi-Wei Su¹, Muhammad Umar², Dervis Kirikkaleli³, Tomiwa Sunday Adebayo⁴

Affiliations

¹ School of Business, Wuchang University of Technology, Wuhan, China. Electronic address: zhiwsu@hotmail.com.
² School of Economics, Qingdao University, Qingdao, Shandong, China. Electronic address: umar@qdu.edu.cn.
³ Faculty of Economics and Administrative Sciences, European University of Lefke, Northern Cyprus, Mersin 10, Turkey. Electronic address: dkirikkaleli@eul.edu.tr.
⁴ Cyprus International University, Faculty of Economics and Administrative Sciences, Department of Business Administration, Northern Cyprus, TR-10, Mersin, Turkey. Electronic address: twaikline@gmail.com.

PMID: 34426223
DOI: 10.1016/j.jenvman.2021.113463

Abstract

The current research assesses the impact of political risk on carbon dioxide (CO₂) emissions in Brazil while controlling the role of financial development, GDP growth, trade openness, and technological innovation. In doing so, the quarterly dataset from 1990 to 2018 is utilized with Bayer and Hanck cointegration, dynamic ordinary least square (DOLS) and canonical correlation regression (CCR), and frequency-domain causality tests. The cointegration test revealed a long-run association amongst the variables of interest. Furthermore, the outcomes from the DOLS and CCR revealed that increasing financial development, technological innovation, trade openness, and real growth increase CO₂ emissions while a better political environment reduces environmental pollution.

Keywords: Bayer and hanck cointegration; Brazil; Carbon emissions; FMOLS; Political risk.

MeSH terms

Brazil
Carbon Dioxide* / analysis
Economic Development*
Environmental Pollution / analysis
Social Conditions

Substances

Carbon Dioxide