Role of political risk to achieve carbon neutrality: Evidence from Brazil

The current research assesses the impact of political risk on carbon dioxide (CO2) emissions in Brazil while controlling the role of financial development, GDP growth, trade openness, and technological innovation. In doing so, the quarterly dataset from 1990 to 2018 is utilized with Bayer and Hanck cointegration, dynamic ordinary least square (DOLS) and canonical correlation regression (CCR), and frequency-domain causality tests. The cointegration test revealed a long-run association amongst the variables of interest. Furthermore, the outcomes from the DOLS and CCR revealed that increasing financial development, technological innovation, trade openness, and real growth increase CO2 emissions while a better political environment reduces environmental pollution. [Display omitted] •This study aims to examine the effect of political risk on CO2 emissions in Brazil.•The study used advanced econometric techniques.•A better political environment is helpful to lower CO2 emissions.•Economic growth and technological innovation increase CO2 emissions.•Trade openness and financial development also cause to increase in CO2 emissions.