Atmospheric consequences of trade and human development: A case of BRIC countries

Abstract

This paper looks into the causal association between economic growth, CO2 emission, trade volume, and human development indicator for Brazil, Russia, India, and China (BRIC countries) during 1980–2013. Following a generalized method of moments (GMM) technique, we have found out that bidirectional causality exists between CO2 emissions and economic growth. Feedback hypothesis is supported between CO2 emissions and human development, trade volume and human development, economic growth, and human development, and CO2 emissions and trade volume. Apart from finding out the unidirectional association from trade volume to economic growth, this study also validated the existence of Environmental Kuznets curve. Empirical findings of the study substantiate that the policymakers of the BRIC nations must focus on the green energy initiatives, either by in-house development or by technology transfer. This movement will allow them to control the ambient air pollution prevalent in these nations.