BRIC panel study finds time-varying links among FDI, energy and CO₂ emissions

A panel study of BRIC countries estimated that foreign direct investment (FDI) was associated with higher carbon dioxide emissions in the short run but lower emissions in the long run. The research, summarized in the abstract of an open-access article published in Discover Sustainability, used a panel dataset covering 2000–2023.

Researchers applied the CS-ARDL method to examine the evolving relationships among FDI, renewable energy consumption, energy intensity and CO₂ emissions. The model distinguished short-run from long-run associations rather than assigning each factor a single, constant relationship with emissions. The abstract does not provide country-specific estimates, uncertainty intervals, model diagnostics or the full set of model assumptions.

The reported empirical results associate short-run FDI inflows with increased emissions, which the authors interpret as reflecting investment allocated to pollution-intensive sectors. Over the longer term, the model associates FDI with lower emissions, an effect the authors attribute to the diffusion of cleaner and more developed production technology. These model results do not establish that increasing FDI would necessarily reduce emissions in every setting.

Renewable energy consumption was described as primarily improving environmental quality, but the study also associates its life-cycle emissions and related energy inefficiencies with higher emissions over time. Energy intensity had a positive association with CO₂ emissions in the short run and a negative association in the long run. The authors interpret the latter pattern as indicating the importance of energy-efficiency reforms. Overall, the findings concern the estimated relationships within the BRIC panel and 2000–2023 study period; the abstract does not establish that the same results apply identically to each country or beyond that period.

Subject of Research: Short- and long-run associations among FDI, energy use, energy intensity and CO₂ emissions in BRIC countries.

Article Title: Assessing the impact of foreign direct investment (FDI) and energy consumption on carbon dioxide emissions in BRIC nations

Article References: Imam, M. A., Abdelrehim, M., Al-alawnh, N. A. K., AL-Radaideh, I. S., Mujahed, M. M., Abbadi, A., & Hani, L. Y. B. (2026). Assessing the impact of foreign direct investment (FDI) and energy consumption on carbon dioxide emissions in BRIC nations. Discover Sustainability. https://doi.org/10.1007/s43621-026-04706-4

Image Credits: AI Generated

DOI: 10.1007/s43621-026-04706-4

Keywords: BRIC countries, foreign direct investment, CO₂ emissions, renewable energy, energy intensity, CS-ARDL, panel study, emerging economies, Assessing, impact, foreign, direct