The role of tourism and renewable energy in testing the environmental Kuznets curve in the BRICS countries: fresh evidence from methods of moments quantile regression.

Abstract

BRICS are among the rising nations which drive economic growth by excessive utilization of resources and resulting in environment degradation. Although there is bulk of research on environmental Kuznets curve (EKC), very limited studies explored the scope in context of tourism in BRICS countries. So this research is conducted to explore the association of tourism, renewable energy, and economic growth with carbon emissions by using annual data of BRICS countries from the year 1995 to 2018. By using the recent approach of method of moments quantile regression (MMQR), the finding shows that tourism has stronger significant negative effects from 10th to 40th quantile while the effects are insignificant at remaining quantiles. Furthermore, an inverted U-shape EKC curve is also apparent at all quantiles excluding 10th and 20th quantiles. For renewable energy, the results are found negatively significant across all quantiles (10th-90th) which claim that CO2 emission can be reduced by opting renewable sources. Hence, the empirical results of the current study provide insights for policymakers to consume renewable energy sources for the sustainable economic growth and solution of environmental problems.