Does urbanization lead to more carbon emission? Evidence from a panel of BRICS countries

This study attempt to add to the existing literature probing empirically the relationship between urbanization and carbon emission for the BRICS countries within the period 1985-2014. In our present study, the panel unit root, cointegration, and causality tests allowing for cross-sectional dependence, nonstationarity, and heterogeneity are conducted to enhance the understanding of the causal effect of urbanization on carbon emission. Using heterogeneous panel cointegration test, long-run equilibrium cointegration relationship has been found to exist between urbanization and carbon emission. Moreover, empirical results clearly indicate that in the long term, urbanization Granger causes carbon emission. These findings contribute to advancing the emerging literature as well as deserve special attention from policy maker and urban planner in the BRICS countries. (C) 2016 Elsevier Ltd. All rights reserved.