Dynamic nexus of 'economy-energy-environment' in BRICS countries: a time-frequency analysis

This study investigates the association and coherence of energy consumption (EC), economic growth, and environmental quality (Carbon emissions) of Brazil, Russia, India, China, and South Africa (BRICS countries) over the period 1971-2018. We employed wavelet correlation and partial wavelet coherence approaches to determine the associations of EC, economic growth, and carbon emissions (CO2) for the countries with strong economic development and most polluting nature (BRICS). The empirical results for Brazil, China, and South Africa show a weak short-run association between economic growth and EC/CO2 emissions. However, Russia and India have exhibited long-run comovement among economic growth and EC/CO2 emissions while controlling for trade openness. These findings also support the pollution haven hypothesis (PHH). A clear understanding of the complex dynamic interactions between the economy, energy, and environment is possible through wavelet analysis with multiple time-horizons. This study suggests that BRICS countries should adopt/revamp renewable policy interventions that ensure the swift sustainable energy transition, thus contributing to global warming mitigation targets.