Modeling Disaggregate Globalization to Carbon Emissions in BRICS: A Panel Quantile Regression Analysis

This study analyzes the impact that economic, political, and social globalization has had on carbon dioxide emissions in BRICS countries from 1991 to 2022. An empirical analysis has been performed by using the panel ordinary least squares, fixed effects, fully modified ordinary least squares, dynamic ordinary least squares, and panel quantile regression methods. The findings show that both coal-based energy production and economic expansion are major contributors to carbon emissions in BRICS countries. This research substantiates that there is an inverted U-shaped relationship between carbon emissions and per capita income in these countries, which validates the environmental Kuznets curve (EKC) hypothesis. Also, coal-based energy production and economic development are seen to be significant in raising carbon emissions at lower quantiles, and their significance falls at higher quantiles, thus reinforcing the EKC hypothesis in BRICS. The results show a strong influence of both political as well as economic globalization on carbon emissions, whereas social globalization has an insignificant impact. The findings indicate that the influence of economic and political globalization on carbon emissions differed across the distribution of carbon emissions, with a higher effect in the lower to middle quantiles and a lower effect in the higher quantiles; this is consistent with the EKC theory. This type of impact by disaggregate globalization indicates that deeper regional cooperation and the empowerment of global institutions can depress global carbon emissions.