Energy consumption, CO2 emissions and economic growth nexus: Evidence from panel Granger causality test

Hamrita, Mohamed Essaied and Mekdam, Mejdi (2016): Energy consumption, CO2 emissions and economic growth nexus: Evidence from panel Granger causality test.

Abstract

This paper examines the empirical causal relationship between energy consumption, CO2 emissions and economic growth for six oil-exporting countries from the Golf Cooperation Council (GCC) region over the period 2000:2011. Bootstrap panel Granger causality test approach is used which take account the cross-sectional dependency and the heterogeneity across countries. The empirical results support a bi-directional causality between economic growth and energy consumption for Bahrin and one-way Granger causality running from economic growth to energy consumption for United Emirate Arab and Qatar. Regarding to GDP-CO2 emissions nexus, a reverse relationship from CO2 to GDP for Bahrin and Kuwait is found. However, a two-way Granger causality between CO2 emissions and energy consumption for United Arab Emirate is found.

• Item Type: MPRA Paper
• Language: English
• Keywords: Energy consumption, CO2 emissions, economic growth, bootstrap panel causality test, Cross-sectional dependence, Heterogeneity, GCC.
• Subjects: C - Mathematical and Quantitative Methods > C1 - Econometric and Statistical Methods and Methodology: General; C - Mathematical and Quantitative Methods > C3 - Multiple or Simultaneous Equation Models ; Multiple Variables; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q2 - Renewable Resources and Conservation; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q4 - Energy; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q5 - Environmental Economics

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