Sari and Soytas (2009) investigate the relationship between carbon emissions, income, energy and total employment in five selected OPEC countries (including two MENA countries: Algeria and Saudi Arabia) for the period 1971–2002. They mainly focus on the link between energy use and income. Employing the autoregressive distributed lag (ARDL) approach, they find that there is a cointegrating relationship between the variables in Saudi Arabia and conclude that none of the countries needs to sacrifice economicgrowth to decrease their emission levels. Recently, Narayan et al. (2010) tested the Environment Kuznet’s Curve (EKC) hypothesis for 43 developing countries for the period from 1980 to 2004. They examined the EKC hypothesis based on the short- and long-run income elasticities vis-à-vis CO 2 emissions; that is, if the long-run income elasticity is smaller than the short-run income elasticity then it is evident for them that a country has reduced carbon dioxide emissions as its income has increased. They found that for the Middle Eastern panel, the income elasticity in the long run is smaller than the short run, implying that carbon dioxide emission has fallen with a rise in income. By using the same methodology Jaunky (2010) tested the EKC hypothesis for 36 high-income countries (including three MENA countries: Bahrain, Oman and UAE) over the period 1980-2005. Carbon dioxide emissions and GDP series are integrated of order one and cointegrated especially after controlling for cross-sectional dependence. Unidirectional causality running from real per capita GDP to per capita CO 2 emissions was uncovered in both the short run and long run. The empirical analysis based on individual countries suggests that for Oman (and for other 6 non MENA countries), as well as for the whole panel, CO 2 emissions have fallen as income rises in the long run. A 1% increase in GDP generates an increase of 0.68% in CO 2 emissions in the short run and 0.22% in the long run for the panel. These results do not provide evidence in favor of the EKC hypothesis but indicate that over time CO 2 emissions are stabilizing in rich countries.
This article extends the recent findings of Liu (2005), Ang (2007), Apergis et al. (2009) and Payne (2010) by implementing recent bootstrap panel unit root tests and cointegration techniques to investigate the relationship between carbon dioxide emissions, energyconsumption, and real GDP for 12 MiddleEast and NorthAfricanCountries (MENA) over the period 1981–2005. Our results show that in the long-run energyconsumption has a positive significant impact on CO2emissions. More interestingly, we show that real GDP exhibits a quadratic relationship with CO2emissions for the region as a whole. However, although the estimated long-run coefficients of income and its square satisfy the EKC hypothesis in most studied countries, the turning points are very low in some cases and very high in other cases, hence providing poor evidence in support of the EKC hypothesis. Thus, our findings suggest that not all MENA countries need to sacrifice economicgrowth to decrease their emission levels as they may achieve CO2emissions reduction via energy conservation without negative long-run effects on economicgrowth.
has not been attained without cost — a heavy toll paid by the region’s ecosystem. Economicgrowth patterns driven by intensive energy use and foreign investment in dirty industries have led to degradation (Arouri et al., 2012; Omri, 2013; Farhani and Shahbaz, 2014; Sinha and Sen, 2016; Kahia et al., 2017; Paramati et al., 2017). MENA remains in an early stage of industrialization, which is characterized by an increase in manufacturing production. There is a consensus in the necessity of adopting optimal economic and energy policies to prevent and control environmental degradation in this region. We chose MENA countries as a sample for this study based on different factors. First, the MENA region generates around 39% of crude oil and gas and a variety of non- oil fuels. It also has a high availability of mineral and non-mineral natural resources. Energy production and consumption from these sources generate 85% of all greenhouse gas (GHG) emissions in MENA (Charfeddine and Mrabet, 2017; Kahia et al., 2017). In 2013, MENA’s emissions were estimated to be more than 2 million metrics tons of CO 2 equivalent, which
Compared to previous studies (see table1), this paper used simultaneous equations based on structural modeling to study of the nexus between energyconsumption, CO2emissions and economicgrowth in the MiddleEast and North Africa (MENA) region. As we can see, about the emerging economies, our literature review generally indicates that little attention has paid to smaller emerging economies, particularly in MENA region. This region has some of the largest energy reserves in the world. Yet, while the region is trying to industrialize and modernize its economies, there are the challenges of the carbon emissions. Moreover, energyconsumption is the most significant source of pollution and, in terms of particulate matter concentrations; MENA represents the second most polluted region in the world – after South Asia – and the highest CO 2 producer per dollar of output. The model allows examining at the
Regarding the interdependence between renewable energyconsumption and trade, short- run Granger causality tests highlight the presence of unidirectional causality running from renewable energyconsumption to trade. This result is not in line either with the findings by Al-Mulali et al. (2014) for a number of Latin American countries; they find a unidirectional causality running from trade to renewable energyconsumption. Our results are not similar to those provided by Ben Aïssa et al. (2014) either for a panel of 11 Africancountries; they find no causal relationship between these two variables. Therefore, our results indicate that any conservation in the use of clean energy is expected to slow down exports or/and imports, but the reverse does not seem to hold.
energy with little or no impact on climate change. Directive 2001/77/EC of the European Union defines renewable energy sources (RES) as non-fossil renewable energy sources that include wind, solar, geothermal, wave, tidal, hydropower, biomass, landfill gas, wastewater treatment plant gas and biogas . The RES can not only reduce GHG emissions but also contribute to job creation and national energy supply protection. Given these submissions, it is imperative to investigate how the emissions of pollutants and renewable energy emitted from the use of fossil fuels can affect SSA economicgrowth. Different studies have been conducted to diagnose SSA countries ' growth and development problems, often using traditional growth models to identify the implications of certain fundamental variables, including capital formation, labor, human capital, and technology, for the region's growth and development. However, very few of these studies have identified energy use as a critical determinant of the region's economicgrowth ; ;  and . Moreover, only fewer studies investigate the impact of energy on sub- Saharan Africa's economicgrowth, as they mostly focused on assessing the impact of renewable or non-renewable energy on the region's economicgrowth . This study is, therefore, particularly interested in how renewable energyconsumption and pollutants fit into the sub-Saharan African region's complex system of economicgrowth. The study aims to examine the effects of renewable energyconsumption and emissions of pollutants as a CO2 proxy on SSA's economicgrowth to provide the SSA policymakers with political implications. This research overcomes literature gaps by using alternative modeling frameworks, longer samples than previous studies, recent advances in econometric techniques, and being the first to investigate the impact of renewable energyconsumption along with pollutants on the region's economicgrowth.
The actions related to rationalisation of energy use in Tunisia were mainly focused on stepping up the actions of mandatory and periodic energy audits and signing performance contracts in the industry, transport and services sectors. Since the end of the nineties, pilot projects in the field of energy conservation were implemented in the housing and services sectors, and encouraging the use of energy saving equipments, appliances and materials. Besides, several programmes were pursued in relation to cogeneration in the industry sector, energy efficiency in street lighting networks, and rationalisation of energy use in the administration and public facilities. Also, as part of implementing the State policy in the field of energy substitution and directing consumption towards less costly energy, effort was invested in pursuing the programme of promoting the use of natural gas as a fuel in the transport sector and fostering the use of natural gas powered air conditioning in the services sector.
causality, unit root tests, multivariate cointegration, panel cointegration, vector error correction modeling (VECM) and innovative accounting approach to detect the direction of causality between economicgrowth and energyconsumption (Chontanawat et al. ; Shahbaz and Lean . These inconclusive empirical evidences could not help economic policy planners in lucid a wide-ranging energy plan to prolong long run economicgrowth (Ozturk and Acaravci , Payne  ). Hossain and Saeki  tested the relationship between electricity consumption and economicgrowth. They used the data of 76 countries, and divided these countries in five panels (high income, upper middle income, lower middle income, low income). On the basis of the panel conintegration approach found cointegration only in case of high income, upper middle income and global panels.With the appropriate knowledge about the direction of causality between energyconsumption and economicgrowth is very essential regarding theoretical and policy point of view (Ghali and El-Sakka ).
6 economicgrowth. Fifth, using linear and hidden cointegration methodologies, Tiwari et al. (2015) examine whether asymmetric effects exist between energy (renewable and non- renewable) production and economicgrowth in 12 SSA for the 1971-2011 period. The empirical findings confirm and reject the growth hypothesis for some sub-samples, implying that conservation policies could adversely affect growth. Sixth, Ackah and Kizys (2015) investigate the determinants of renewable energy in Africa using fixed effects, random effects and dynamic panel models to find that the principal drivers of renewable energy in oil-rich African economies are: energy resource depletion per capita, real income per capita, energy prices and carbon emissions per capita. Seventh, Raheem and Yusuf (2015) use 15 Africancountries for the period 1980-2010 within the framework of a nonlinear model to find evidence of the EKC hypothesis from the energy-growth nexus in Tunisia, Togo, Egypt, Côte d’Ivoire and Benin. Moreover: (i) high regime of energyconsumption boosts growth in Senegal, Morocco and Algeria; (ii) low regime of energyconsumption slows growth in South Africa and Sudan whereas (iii) evidence of a neutrality hypothesis is established for Zambia and Cameroon.
in the economicgrowth, upgrading the social capital, environmental improvements and betterment of the political conditions in this region. The development process of these conditions will rest and depend on the population control, consumption demand control, governance practices and methods, water resources management especially the groundwaters, coordinating the nexus of water, energy, food and then utilizing and operating the water resources sustainably and the climatic changes. In this region, gaining water safety is more important than coping with the water shortage (World Bank, 2018). The water shortage will mostly increase in the whole MiddleEast and North Africa countries due to the demand increase and over the subsequent few decades and most importantly, most of the countries in the said region can run out of the fossil waters by 2050 except some measures and actions could be taken for controlling the unstable water condition. The influence of such a growing shortage is remarkable in the agricultural sector it is predicted that production in some countries may decrease by 60 % by 2050. In the ascending trend and process, a decrease in the dependency of the agricultural and energy sectors to the water and a change to the renewable energies can reduce the water shortage whilst this matter can decrease the Greenhouse Gas Emissions (Borgomeo et al., 2018).
Due to the fact that energy is the vital source of the economic development and it directly pollutes the environment, the world could face an environmental catastrophe if precautions are not taken into consideration (Sims, 2004; DeCanio, 2009; Reddy and Assenza, 2009; Farhani and Ben Rejeb, 2012a). In this case, renewable energy can potentially play a pivotal role to increase energy supplies and to reduce emissions (Apergis et al., 2010). According to International Energy Agency (IEA, 2009), renewable energy accounted for 13.1% of world total primary energy supply in 2004 and offered significant opportunities for further growth that can facilitate the transition to a global sustainable energy supply by the middle of this century. Furthermore, the share of renewable energy in the electricity generation mix could increase from 18% in 2004 to 39% by 2050. If the global temperature rises to be limited between 2 °C and 2.4 °C, the renewable energy will serve a vital role to reduce 50% CO 2 emissions by 2050. In the
and sources of energyconsumption. In particular, despite causality between economicgrowth and energyconsumption being bidirectional in the case of the full sample of coun- tries and of total energyconsumption (i.e. evidence for the feedback hypothesis), the same does not hold true for all sub-sources of energyconsumption and country income group- ings. For instance, the feedback hypothesis is only supported for oil energyconsumption (in the lower middle, upper middle and high income countries) and to a lower extent for electricity energyconsumption (only in lower middle income countries), while no signif- icance evidence of the feedback hypothesis is documented for renewable energy, natural gas and coal energyconsumption. Importantly, our findings do not point to any statis- tically significant evidence that renewable energyconsumption in particular is conducive to economicgrowth, a fact that weakens the argument that renewable energy consump- tion is able to promote growth in a more efficient and environmentally sustainable way. Finally, in analysing the case for an environmental Kuznets curve (EKC), we find that the continued process of growth aggravates the greenhouse gas emissions phenomenon. Put differently, CO2emissions increase with the level of development. In this regard, our findings do not provide any evidence that developed countries may actually grow-out of environmental pollution.
There are limited number of studies that examine the environment and economicgrowth of an oil producing country specifically the country in the middle-east. To our survey, Al-Iriani (2006) has studied economicgrowth and energyconsumption in the Cooperation Council for the Arab States of the Gulf (GCC) countries. Al-Iriani used a pooled data to examine the relationship. Though this method may correct specific country effects bias, it fails to recognize specific characteristics of a country in GCC such as sectoral dependence of economy to oil industry. Therefore, focusing on a country’s data may provide better economic interpretation. Similarly, Mehrara (2007) used panel cointegration approach to study the relationship between commercial energyconsumption and economicgrowth. Using a panel bivariate model of 11 oil exporting countries including Bahrain, Mehrara finds similar result where economicgrowth granger cause energyconsumption. Chontanawat et al. (2008), on the other hand, find no causality between energy and economicgrowth in Bahrain. Chontanawat et al.’s result may subject to omitted variable bias since they used a bivariate model. Overall, to our knowledge there is no study to incorporate both energy and economicgrowth together with emission variable in an oil producing country.
A possible interpretation of these findings is that delays affecting institutional and pro-market reforms in infrastructure sectors in MENA have limited the impact on growth. Of all the infrastructure sectors, the telecommunications sector is the only one where substantial institutional reforms have been implemented in MENA. While the privatization of incumbent telecommunications operators has made little progress, competition has been introduced in the mobile communication and data segments. Autonomous regulatory entities (13 countries out of 21 have established regulators) have also been established to regulate anti-competitive practices and protect consumers’ rights. These developments have therefore led to less distorted prices and improved quality of services.
Considering first the country-specific studies, Ocal and Aslan (2013) examine the causal relationship between renewable energy use and economicgrowth in Turkey over the period 1990-2010. Using the ARDL approach and Toda-Yamamoto causality tests, the authors found that there exists a unidirectional causality running from economicgrowth to renewable energyconsumption, supporting therefore the conservation hypothesis. Using the same causality tests, Menyah and Wolde-Rufael (2010) test the hypothesis that nuclear energyconsumption and renewable energyconsumption reduce CO2emissions in the US during 1960-2007. Among others, they find that economicgrowth and CO2emissions Granger cause renewable energyconsumption with no feedback. Yildirim et al. (2012) apply the Toda-Yamamoto procedure and bootstrap-corrected causality test on the US data. Biomass energyconsumption, hydropower energyconsumption and biomass-wood-derived energyconsumption are used along with the total renewable energyconsumption, while employment and gross capital formation are used as control variables. Empirical evidence reports a unidirectional causality running from biomass energyconsumption to economicgrowth while the neutrality hypothesis is supported between economicgrowth and all of the other renewable energy kinds as well as the total renewable energyconsumption.
Cabaravdic and Nilsson (2017) argue that corruption as a subject of economic research is a trending topic, and in the age of technology when one has access to more information, bribes and corrupted actions are more easily detected. This thesis tries to answer the question “Does corruption show a significant effect in the growth of an economy” for Southern Europe. The method used to look at this relation is linear panel data regression model with robust standard errors specified in Methodology section. The outcomes of three different regressions with fixed effects are presented in section Results implying that corruption has a positive impact on real GDP per capita growth of the countries in question. This means in the short-term, corruption may have positive effect on economicgrowth in Southern Europe. Such an outcome provides evidence and confirms the hypothesis that corruption can grease the wheels of an economy by avoiding inefficient bureaucracy.
Every developed and developing economy of the world desire a certain level of economicgrowth and sustainable development, but climate change and global warming as a common and controversial environmental issues in this modern age poses threat to achieving this objective. This is because a sizable portion of the world’s energyconsumption need is met through fossil fuels. Therefore, increase in global trade and a rapid surge in economic activities around the world have caused a significant increase in carbon dioxide (CO 2 ) emission. As heavy use of energy and other natural resources cause environmental deterioration, also the gas emissions from fossil consumption increases the amount of CO 2 which harms the environment as well as inflicting irreparable damages on the atmosphere. This in turn leads to extremely risky climate changes such as drought, floods and rising sea levels. The global impacts are already apparent in increasing the frequency of extreme weather events, heightening storm intensity and reversing ocean currents.
emissions to shocks from oil,gas and coal consumption. According to Lutkepohl and Reimers (1992), impulse response functions (IRFs) are the appropriate tool to find out the reactions of economic variables to the impulse of an indicator. Furthermore, according to Osorio and Unsal (2011), GIRF considers shocks to individual errors an integrate out the other shocks influences based on historical distributions of all errors which can provide better results than common IRF. Figure 1 portrays the Accumulated Generalized IRF results when there is a pulse in consumption of three types of non-renewable energy resources in Iran over 15 periods.
such research are however contradictory and in many cases researchers failed to establish the inverted U rela- tionship with real life data. A similar yet detailed branch of research attempts to analyze the link between energyconsumption and output, suggesting that economic de- velopment and output may be jointly determined and the direction of causality between these two variables needs to be tested. Following the seminal work of Kraft and Kraft , several others including Masih and Masih , Yang , Wolde-Rufael , Narayan and Singh , Narayan and Russell  tested the energyconsumption and economicgrowth nexus with a variety of techniques and for different panel of countries. The recent studies in the area of growth-pollution-energyconsumption nexus however attempt to link these two branches of literatures while combining them in a single multivariate framework. Ang , Soytas, Sari and Ewing , Halicioglu , Tamazian and Rao  initiated this combined line of research. Among the recent literature involving the test- ing of EKC, Lean and Smyth  found non-linear rela- tionship between emission and real output. The finding of Akbostanci, Turut-Asik and Tunc  on Turkish economy was however different from that of Lean and Smyth  as the former found an increasing relation- ship between carbon emissions and income in the long run when they looked at cointegration between carbon emissions and per capita income for Turkish economy. Their panel time series analysis of 58 provinces of Tur- key on the contrary, revealed an N-shaped relationship for SO 2 and PM10 (two pollutants commonly referred in
Common and Barbier, 1996). Using Toda and Yamamoto (1995) approach, Soytas and Sari (2007) found that CO2emissions granger cause energyconsumption in Turkey but not vice- versa. So, whether continued increase in national income brings more degradation to the environmental quality is much critical for the design of development strategies for developing economies (Ang, 2007). The author found that CO2emissions granger cause to the output which is conflicting to the EKC hypothesis. Elif et al., (2009) found that a monotonically increasing relationship between CO2 and income in Turkey. However, the empirical evidence remains controversial and ambiguous until to date and there is no agreement in the literature on the economic level at which environmental degradation starts declining (Dinda, 2004). We have chosen Bangladesh as a case study for some important reasons. First, the energy sector is not well organized (Mozumder and Marathe, 2007) in Bangladesh. It is suspected that economy grows with energyconsumption grow. It is an energy deficit country. The major energy consists of natural gas (from which almost half of total is used for electricity production), petroleum and coal (BBS, 2005). The growth rate of economy is about 6% which is expecting (by policy makers) to rise over time. Since independence, the economy is growing moderately ranging from average economicgrowth 4 to 6 per cent per annum (BBS, 2005). The government makes strategic policies to increase the gross domestic product (GDP) growth at least by 2% more by 2015 (Six-five year plan, GOB, 2010). If GDP growth is associated with higher energyconsumption and causality runs from energy to GDP, therefore, very often lack of smooth energy supply might be a serious constraint in the future to continue the same growth or to increase as planned. This can be true in the case of electricity consumption (when electricity consumption is used as a proxy for energy) in Bangladesh as well.