The Relationship Between Economic Growth, Energy Consumption and CO₂ Emission in the Middle East and North Africa (MENA)

Abstract

Research background: CO2 emissions are considered to be the main reason for global warming, and for this reason, their regulation is a very important issue for governments. Due to the increasing use of energy, carbon dioxide emissions have increased dramatically over the past century, with a direct link to economic growth and development. The relationship between CO2 emissions, growth and energy consumption is therefore at the heart of current economic issues. Purpose: This study aimed at examining the relationship among economic growth, carbon dioxide (CO2) emissions and energy consumption in selected MENA countries, in the period 1995–2017. Research methodology: To prove these relations, a stationary data panel methodology is used supported by unitary root and cointegration tests. Results: The results indicated that there is a long-term relationship between CO2 emissions, energy consumption and GDP. In addition, it is found that the elasticity of CO2 emissions with respect to energy consumption is less than one (inelastic), and the elasticity of CO2 emissions with respect to GDP suggests the existence of an Environmental Kuznets Curve. An important finding is that energy consumption has a positive but relatively low effect on CO2 emissions. To reduce CO2 emissions, the countries of the MENA region are being called upon to increase significantly the use of renewable energies and the establishment of a more efficient energy policy.

Pertumbuhan Ekonomi dan Emisi Karbondioksida di Indonesia

“…Hasil ini selaras dengan penelitian (Ghosh, 2010) dimana terjadi kausalitas jangka pendek antara emisi karbon dioksida dan pertumbuhan ekonomi dimana jika upaya untuk mengurangi emisi karbon dioksida dapat dilakukan, maka dapat menyebabkan turunnya pendapatan nasional. Adapun bentuk hubungan jangka panjang antara emisi CO2, energi konsumsi, dan PDB (Touitou, 2021).…”