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Energy Consumption, Economic Growth and CO2 Emissions: Evidence from Panel Data for MENA Region

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Author Info

  • Sahbi Farhani

    (University of Tunis El Manar, TUNISIA)

  • Jaleleddine Ben Rejeb

    (University of Sousse, TUNISIA)

Abstract

Energy plays a vital role in economic development. It performs a key for sustainable development. Hence, many studies have attempted to look for the direction of causality between energy consumption (EC), economic growth (GDP) and CO2 emissions. This paper, therefore, applies the panel unit root tests, panel cointegration methods and panel causality test to investigate the relationship between EC, GDP and CO2 emissions for 15 MENA countries covering the annual period 1973-2008. The finding of this study reveals that there is no causal link between GDP and EC; and between CO2 emissions and EC in the short run. However, in the long run, there is a unidirectional causality running from GDP and CO2 emissions to EC. In addition, to deal with the heterogeneity in countries and the endogeneity bias in regressors, this paper applies respectively the FMOLS and the DOLS approach to estimate the long-run relationship between these three factors.

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Bibliographic Info

Article provided by Econjournals in its journal International Journal of Energy Economics and Policy.

Volume (Year): 2 (2012)
Issue (Month): 2 ()
Pages: 71-81

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Handle: RePEc:eco:journ2:2012-02-4

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Related research

Keywords: MENA countries; Energy consumption; Economic growth; CO2 emissions; Panel cointegration; Panel causality;

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References

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Citations

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Cited by:
  1. Ozcan, Burcu, 2013. "The nexus between carbon emissions, energy consumption and economic growth in Middle East countries: A panel data analysis," Energy Policy, Elsevier, vol. 62(C), pages 1138-1147.
  2. Florin Mariasiu, 2012. "Energy Sources Management and Future Automotive Technologies: Environmental Impact," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 342-347.
  3. Wendy N. Cowan & Tsangyao Chang & Roula Inglesi-Lotz & Rangan Gupta, 2013. "The nexus of electricity consumption, economic growth and CO2 emissions in the BRICS countries," Working Papers 201340, University of Pretoria, Department of Economics.
  4. Souhila EDDRIEF-CHERFI & Baghdad KOURBALI, 2012. "Energy Consumption and Economic Growth in Algeria: Cointegration and Causality Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 238-249.
  5. Hanan Naser, 2014. "Oil Market, Nuclear Energy Consumption and Economic Growth: Evidence from Emerging Economies," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 288-296.
  6. Patrick Withey, 2014. "Energy Use, Income and Carbon Dioxide Emissions: Direct and Multi-Horizon Causality in Canada," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 178-188.
  7. Chaido Dritsaki & Melina Dritsaki, 2014. "Causal Relationship between Energy Consumption, Economic Growth and CO2 Emissions: A Dynamic Panel Data Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 4(2), pages 125-136.

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