Spatial influence evaluation research of economic growth on greenhouse gas emissions in Brazil

Abstract

Given the large contribution of rural activities to the Brazilian economy and the vast contribution of these agricultural activities to the emission of pollutant gases, this paper aims to analyze the impact of economic growth on greenhouse gas emissions related to the urban and rural areas of Brazil. Data from 2004 to 2014 were used and the environmental Kuznets curve equation for Brazilian states was estimated via a spatial econometric method for panel data. Thus, two effects have been demonstrated for both urban and rural areas. First, rising economic growth increases short-term pollutant emissions. Second, in the long run, maintaining the rise in economic growth levels leads to a reduction in greenhouse gas emissions. Finally, the estimation results showed the need to implement pollutant removal policies, especially in the rural areas of Brazilian states.