Error-correction based panel estimates of the relationship between CO2 emissions, energy usage and output in Gulf Cooperation Council countries

HAMDI, Helmi and SBIA, Rashid (2012): Error-correction based panel estimates of the relationship between CO2 emissions, energy usage and output in Gulf Cooperation Council countries.

Abstract

This study examines the causal relationship between carbon dioxide emissions, energy consumption and real output within a panel vector error correction model for six Gulf Cooperation Council (GCC) countries namely Bahrain, Kuwait, Saudi Arabia, Qatar and United Arab Emirates over the period 1980–2009. In the long-run, there is a dynamic relationship between carbon emissions and income, which confirms the presence of the Environmental Kuznets Curve (EKC) for GCC countries. The short-run dynamics results reveal a bi-directional causality between carbon and energy usage but reject the existence of EKC.

• Item Type: MPRA Paper
• Language: English
• Keywords: Environmental Kuznets Curve, energy consumption, Gulf Cooperation Council
• Subjects: Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q56 - Environment and Development ; Environment and Trade ; Sustainability ; Environmental Accounts and Accounting ; Environmental Equity ; Population Growth; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics > Q58 - Government Policy

References

Al-Iriani, M. (2006) Energy–GDP relationship revisited: an example from GCC countries using panel causality. Energy Policy, 34, 3342–3350. Akinlo, A.E. (2008) Energy consumption and economic growth: evidence from 11 African countries. Energy Economics, 30, 2391–2400.

BP (2011) BP Statistical Review of World Energy, November 2011, London Engle, R.F. and Granger, C.W. J. (1987) Cointegration and Error-Correction: Representation, Estimation, and Testing. Econometrica, 55, 251-276.