Climate Change , CO? , and Macroeconomic Stability Nexus: An Economic Growth Analysis in BRICS Economies
DOI:
https://doi.org/10.33395/owner.v10i4.3544Keywords:
economic growth, macroeconomic, climate change, ARDL-Panel, CO?Abstract
This study aims to explore the long- and short-term impacts of macroeconomic factors, Climate Change, and CO? emissions on the Economic Growth of BRICS member states during 2002–2023. This study employs a quantitative approach using an ex post facto model. Furthermore, the population consists of the 5 original BRICS member states, with a non-probability sampling technique, namely exhaustive sampling. Consequently, based on the sampling technique applied, five key BRICS member states were selected as the sample, comprising 110 observations. Data analysis was conducted using the PMG ARDL-Panel model. The results indicate that the variables CO? , Foreign Direct Investment (FDI), and Inflation do not have a significant effect. Meanwhile, the variables Climate Change and Trade openness (TO) have a significant effect in the long run. In the short term, inflation was found to have a significant effect in Russia but not in the other four countries; conversely, trade openness was significant only in Brazil and not in the other four countries. Based on this analysis, there are significant differences in the variables between the long- and short-term models. This phenomenon implies that macroeconomic conditions, proxied through inflation, trade openness, and Foreign direct investment, as well as Climate Change, proxied through maximum surface temperature (TSMAX) and CO? emissions, exert differing effects over time on Economic Growth in the BRICS member states.
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