Open Access Article

Asymmetric Approach to Investigating the EKC hypothesis: Evidence from the BRICS Countries

Authors

Misbah Nosheen(1) Misbah Nosheen Corresponding author Affiliation Department of Economics, Hazara University Mansehra, Pakistan Email addressmisbah@hu.edu.pk Other articles by this author , Muhammad Ali Abbas(2) Muhammad Ali Abbas Affiliation Department of Economics, Hazara University Mansehra, Pakistan Other articles by this author , Shehzad Ahmad(3) Shehzad Ahmad Affiliation COMSATS University Islamabad, Abbottabad Campus, Pakistan Other articles by this author , Javed Iqbal(4) Javed Iqbal Affiliation School of Economics, Quaid Azam University, Islamabad, Pakistan Other articles by this author

  1. Department of Economics, Hazara University Mansehra, Pakistan
  2. Department of Economics, Hazara University Mansehra, Pakistan
  3. COMSATS University Islamabad, Abbottabad Campus, Pakistan
  4. School of Economics, Quaid Azam University, Islamabad, Pakistan

https://doi.org/10.36923/jcmi.v6i1.598

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Abstract

Environmental challenges have emerged as one of the most critical matters affecting the globe today. Human-caused carbon emissions are the primary cause of these environmental challenges, and in order to decrease and mitigate their impacts, officials throughout the world are constantly researching their drivers and determinants. BRICS is considered a significant part of the world economy and energy markets. This study examines the EKC hypothesis for the BRICS while applying a nonlinear ARDL approach that distinguishes it from previous studies. For this purpose, this study decomposes the per-capita income (GPC) series into two components: the positive and the negative series. Empirical findings indicate that in the decomposed model, the coefficients of the positive series of GPC and GPC2 have significant negative and positive signs, respectively, in all countries of the region, which supports the EKC hypothesis. Results imply that BRICS governments need to focus on reducing their very considerable dependence on fossil fuels. The clean energy evolution can lead to the abandonment of fossil fuel assets, including those retained or supported by governments.

Article information

Keywords
EKC hypothesisEconomic growth decompositionBRICSrenewable energy consumption
Section
Articles
Issue
Vol. 6 No. 1 (2025)
Submitted
November 19, 2024
Accepted
May 20, 2025
Published
June 22, 2025
Corresponding author
Misbah Nosheen
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