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On the interplay between energy consumption, economic growth and CO2 emission nexus in the GCC countries: A comparative analysis through wavelet approaches

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  • Jammazi, Rania
  • Aloui, Chaker

Abstract

In this paper, we investigate the cross linkages between CO2 emission, economic growth and energy consumption for six GCC countries (Saudi Arabia, Oman, Bahrain, Kuwait, UAE and Qatar) over the period (1980–2013). In doing so, we consider a new approach namely wavelet window cross correlation (WWCC) that combines multi-scaling decomposition, and lead/lag cross correlations. To further assess the robustness of this new method, we rely on the traditional wavelet coherence framework. The results pointed out the existence of bilateral causal effects between EC and EG while only a unidirectional relationship was found from EC to CO2 emissions. The intensity of the co-movements reaches its zenith at coarser scales (in the long run). In addition, the decoupling effects are identified in the short run becoming less pronounced in the long run. Overall, the findings support the hypothesis of the so-called neighborhood-effect since we found striking similarities across countries in the pattern of relationships between the variables. The implications of this study will be useful in better encircling the best ways to adopt a pro-active knowledge aiming to preserve the environment in the GCC region.

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  • Jammazi, Rania & Aloui, Chaker, 2015. "On the interplay between energy consumption, economic growth and CO2 emission nexus in the GCC countries: A comparative analysis through wavelet approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 51(C), pages 1737-1751.
    • Handle: RePEc:eee:rensus:v:51:y:2015:i:c:p:1737-1751
    DOI: 10.1016/j.rser.2015.07.073
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    7. Lu s Miguel Marques & Jos Alberto Fuinhas & Ant nio Cardoso Marques, 2017. "On the Dynamics of Energy-growth Nexus: Evidence from a World Divided into Four Regions," International Journal of Energy Economics and Policy, Econjournals, vol. 7(3), pages 208-215.
    8. Syed Asif Ali Naqvi & Bilal Hussain & Ashfaq Ahmad Shah & Muhammad Atiq Ur Rehman Tariq & Muhammad Usman, 2022. "Influence of Economic Growth, Energy Production, and Subcomponents on the Environment: A Regional Level Analytical Modeling," Sustainability, MDPI, vol. 14(22), pages 1-22, November.
    9. Aynur Pala, 2016. "Which Energy-Growth Hypothesis is Valid in OECD Countries? Evidence from Panel Granger Causality," International Journal of Energy Economics and Policy, Econjournals, vol. 6(1), pages 28-34.
    10. Shahbaz, Muhammad & Haouas, Ilham & SBIA, Rashid & Ozturk, Ilhan, 2018. "Financial Development-Environmental Degradation Nexus in the United Arab Emirates: The Importance of Growth, Globalization and Structural Breaks," MPRA Paper 87365, University Library of Munich, Germany, revised 11 Jun 2018.
    11. Destek, Mehmet Akif & Sarkodie, Samuel Asumadu, 2018. "Investigation of Environmental Kuznets Curve for Ecological Footprint: The Role of Energy and Financial Development," MPRA Paper 106881, University Library of Munich, Germany.
    12. Ahmad Farabi & Azrai Abdullah & Rahmat Heru Setianto, 2019. "Energy Consumption, Carbon Emissions and Economic Growth in Indonesia and Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 338-345.
    13. Charfeddine, Lanouar, 2017. "The impact of energy consumption and economic development on Ecological Footprint and CO2 emissions: Evidence from a Markov Switching Equilibrium Correction Model," Energy Economics, Elsevier, vol. 65(C), pages 355-374.
    14. Alsayegh, Osamah & Saker, Nathalie & Alqattan, Ayman, 2018. "Integrating sustainable energy strategy with the second development plan of Kuwait," Renewable and Sustainable Energy Reviews, Elsevier, vol. 82(P3), pages 3430-3440.
    15. Alharthi, Majed & Hanif, Imran & Alamoudi, Hawazen, 2022. "Impact of environmental pollution on human health and financial status of households in MENA countries: Future of using renewable energy to eliminate the environmental pollution," Renewable Energy, Elsevier, vol. 190(C), pages 338-346.
    16. Ben-Salha, Ousama & Hkiri, Besma & Aloui, Chaker, 2018. "Sectoral energy consumption by source and output in the U.S.: New evidence from wavelet-based approach," Energy Economics, Elsevier, vol. 72(C), pages 75-96.
    17. Danish & Bin Zhang & Zhaohua Wang & Bo Wang, 2018. "Energy production, economic growth and CO2 emission: evidence from Pakistan," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 90(1), pages 27-50, January.
    18. Ramin Khochiani & Younes Nademi, 2020. "Energy consumption, CO2 emissions, and economic growth in the United States, China, and India: A wavelet coherence approach," Energy & Environment, , vol. 31(5), pages 886-902, August.
    19. Maheshwari, Mayank & Singh, Onkar, 2020. "Thermo-economic analysis of combined cycle configurations with intercooling and reheating," Energy, Elsevier, vol. 205(C).
    20. Sarkodie, Samuel Asumadu & Ozturk, Ilhan, 2020. "Investigating the Environmental Kuznets Curve hypothesis in Kenya: A multivariate analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 117(C).
    21. Yang, Xuechun & Lou, Feng & Sun, Mingxing & Wang, Renqing & Wang, Yutao, 2017. "Study of the relationship between greenhouse gas emissions and the economic growth of Russia based on the Environmental Kuznets Curve," Applied Energy, Elsevier, vol. 193(C), pages 162-173.
    22. Antonakakis, Nikolaos & Chatziantoniou, Ioannis & Filis, George, 2015. "Energy Consumption, CO2 Emissions, and Economic Growth: A Moral Dilemma," MPRA Paper 67422, University Library of Munich, Germany.
    23. Sarkodie, Samuel Asumadu & Adom, Philip Kofi, 2018. "Determinants of energy consumption in Kenya: A NIPALS approach," Energy, Elsevier, vol. 159(C), pages 696-705.
    24. Mohamed Abdouli and Sami Hammami, 2017. "Exploring Links between FDI Inflows, Energy Consumption, and Economic Growth: Further Evidence from MENA Countries," Journal of Economic Development, Chung-Ang Unviersity, Department of Economics, vol. 42(1), pages 95-117, March.
    25. Xiu Wu & Jinting Zhang & Daojun Zhang, 2021. "Explore Associations between Subjective Well-Being and Eco-Logical Footprints with Fixed Effects Panel Regressions," Land, MDPI, vol. 10(9), pages 1-15, September.

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