Economic growth and combustible renewables and waste consumption nexus in MENA countries

Ben Jebli, Mehdi and Ben Youssef, Slim (2013): Economic growth and combustible renewables and waste consumption nexus in MENA countries.

Abstract

This paper is an attempt to investigate the causal relationship between economic growth and combustible renewables and waste consumption for 12 countries of the Middle East and North Africa (MENA) region during the period of 1975-2008 using panel cointegration techniques and panel causality tests. Granger causality test shows that there is evidence of no causality among variables in the short-run, while in the long-run the panel error correction model results reveal bidirectional causality between combustible renewables and waste consumption and economic growth. The results from OLS, FMOLS and DOLS panel estimates suggest that: i) The coefficient of combustible renewables and waste is positive and statistically significant. ii) The impact of economic growth on combustible renewables and waste is positive and statistically significant. In the long-run, a 1% increase in combustible renewables and waste increases real GDP in MENA countries by approximately 0.08%, and a 1% increase in economic growth increase combustible renewables and waste by approximately 0.43%. These results reveal that there is no strong relationship between variables given that the impact of each one on the other is quite small.

• Item Type: MPRA Paper
• Language: English
• Keywords: Combustible renewables and waste consumption; Economic growth; Panel cointegration.
• Subjects: C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables > C33 - Panel Data Models ; Spatio-temporal Models; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy > Q43 - Energy and the Macroeconomy

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