ORIGINAL RESEARCH
Building a Green Future: The Impact
of Global Value Chains and Economic Fitness
on CO2 Emissions in BRICS Nations
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1
School of Economics and Management, Xi’an University of Technology, Xi’an, Shaanxi, 710054, China
2
Department of Economics, Division of Management and Administrative Science, University of Education, Lahore,
Pakistan
Submission date: 2024-07-10
Final revision date: 2024-09-20
Acceptance date: 2024-10-28
Online publication date: 2024-12-16
Publication date: 2025-11-14
Corresponding author
Tan Yang
School of Economics and Management, Xi’an University of Technology, Xi’an, Shaanxi, 710054, China
Pol. J. Environ. Stud. 2025;34(6):8377-8390
KEYWORDS
TOPICS
ABSTRACT
Climate change is a major challenge hindering economic efforts to maintain a balance between
economic growth and the environment. BRICS economies, a group of five emerging nations, are
major emitters of CO2 emissions that cause climate change. Their trade patterns and production
structures also contribute to their CO2 emissions. Therefore, the current study analyzed the individual
and synergistic impact of gross value chains (GVCs) and economic fitness (EF) on CO2 emissions
in light of the Environmental Kuznets Curve (EKC) model. The data were cross-sectionally dependent
and heterogeneous. Therefore, comprehensive econometric techniques, including panel-corrected
standard error, feasible generalized least squares, and robust standard error methods, were applied to
the panel of BRICS economies from 1995–2018. The findings of the study revealed i) the existence
of the EKC hypothesis in BRICS economies; ii) the positive and significant individual impact of GVCs
on CO2 emissions while holding the EKC hypothesis; iii) the negative and significant individual impact
of EF on CO2 emissions; iv) the negative and significant synergistic impact of GVCs and EF (GVCs*EF)
on CO2 emissions in the presence of the EKC hypothesis. The most effective incentive policies, such
as tax reductions and financial awards, encourage the local industries involved in GVCs to lower their
emissions. Moreover, retrofitting the existing production infrastructure must be executed to increase
the economic fitness level of economies, which lowers the positive cause of GVC emissions by fostering
the adoption of clean and energy-efficient technologies.
CONFLICT OF INTEREST
The authors declare that they have no known competing financial interests or personal relationships that could have appeared to influence the work reported in this paper.
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