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Article

Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter?

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Department of Business Administration, Faculty of Economics and Administrative Science, Cyprus International University, 99040 Nicosia, Turkey
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Department of Economics, Faculty of Economics and Administrative Science, Near East University, 99138 Nicosia, Turkey
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Department of Business Management, Faculty of Economics and Administrative Sciences, Girne American University, 99300 Mersin, Turkey
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Department of Finance, Fintech & Blockchain Research Center, and Big Data Research Center, Asia University, Taichung City 41354, Taiwan
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Department of Medical Research, China Medical University, Taichung City 40447, Taiwan
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Department of Economics and Finance, The Hang Seng University of Hong Kong, Siu Lek Yuen 41354, Hong Kong, China
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Department of Accounting and Finance, Faculty of Economics and Administrative Sciences, Cyprus International University, Mersin 10, 99040 Haspolat, Turkey
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Author to whom correspondence should be addressed.
Academic Editors: Jose Navarro Pedreño, António Dinis Ferreira, Peter Goethals, Eun-Sung Chung and Vincenzo Torretta
Sustainability 2021, 13(8), 4371; https://0-doi-org.brum.beds.ac.uk/10.3390/su13084371
Received: 18 March 2021 / Revised: 6 April 2021 / Accepted: 6 April 2021 / Published: 14 April 2021
(This article belongs to the Special Issue Reviews, Advances and Applications in Environmental Sustainability)
This study assesses the relationship between economic performance and environmental sustainability by taking into account the role of energy consumption, urbanization, and trade openness in Brazil by using data spanning from 1965 to 2019. The study is distinct from previously documented studies in literature in terms of scope for Brazil, where few entries have been recorded. The major objectives are to address the questions: (a) Is there a long-run connection between the variables under consideration? (b) Can CO2 emissions, trade openness, and energy consumption predict economic performance of Brazil? (c) What is the connection between economic growth and the independent variables at different frequencies and time-period? Furthermore, the study utilized dynamic ordinary least square (DOLS), fully modified ordinary least square (FMOLS), Maki Cointegration, and autoregressive distributed lag (ARDL) to capture the long-run association between the variables of interest. Also, we used the Wavelet coherence and Gradual-shift causality tests to capture the causal linkage between economic growth and the regressors. The advantage of the wavelet coherence test is that it can capture causal linkage between series at different frequencies and periods. The outcome of both Maki cointegration and ARDL bounds testing to cointegration affirms the presence of long-run interaction among the parameters of interest. Furthermore, the outcomes of the DOLS and FMOLS revealed that energy consumption, CO2 emissions, and urbanization exert positive impacts on economic growth in Brazil while there is no significant connection between trade openness and economic growth. Moreover, Gradual shift causality test outcomes disclosed that urbanization, trade openness, CO2 emissions and energy usage can predict the economic performance of Brazil. The outcomes of the wavelet coherence test give credence to the FMOLS, DOLS, and Gradual shift causality tests. View Full-Text
Keywords: environmental sustainability; economic growth; trade openness; urbanization; energy consumption environmental sustainability; economic growth; trade openness; urbanization; energy consumption
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MDPI and ACS Style

Adebayo, T.S.; Awosusi, A.A.; Odugbesan, J.A.; Akinsola, G.D.; Wong, W.-K.; Rjoub, H. Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter? Sustainability 2021, 13, 4371. https://0-doi-org.brum.beds.ac.uk/10.3390/su13084371

AMA Style

Adebayo TS, Awosusi AA, Odugbesan JA, Akinsola GD, Wong W-K, Rjoub H. Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter? Sustainability. 2021; 13(8):4371. https://0-doi-org.brum.beds.ac.uk/10.3390/su13084371

Chicago/Turabian Style

Adebayo, Tomiwa S., Abraham A. Awosusi, Jamiu A. Odugbesan, Gbenga D. Akinsola, Wing-Keung Wong, and Husam Rjoub. 2021. "Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter?" Sustainability 13, no. 8: 4371. https://0-doi-org.brum.beds.ac.uk/10.3390/su13084371

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