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A Multivariate Analysis between Renewable Energy, Carbon Emission and Economic Growth: New Evidences from Selected Middle East and North Africa Countries

Author

Listed:
  • Owen Affor Maku

    (Department of Economics, Delta State University, Abraka, Nigeria.)

  • Promise Oghenevwede Ikpuri

    (Department of Economics, Delta State University, Abraka, Nigeria.)

Abstract

The paper investigated cross-cutting issues relating to renewable energy, carbon-emission and economic growth for a group of 8 MENA countries covering the period 1990-2018. Adopting a modified linear Cobb-Douglas production function, the study adopted the Fully-Modified and the Dynamic OLS estimation technique in examining the aforementioned relationship. Findings from the panel FMOLS and DOLS for the region confirm that a significant relationship exists between CO2 emission and economic growth and that renewable energy consumption triggers a significant effect on economic growth as well. Conversely, the panel of the FMOLS result reveals that while economic growth reacts positively from the effect of CO2 emission, CO2 emission reacts negatively from the effect of renewable energy consumption, as against the positive outcome between renewable energy consumption and CO2 emission as reported by the DOLS. This goes to point out that most economies within this region are yet to uncover best and appropriate policies which can control the regulation of renewable energy prices, that can help take into consideration the stability in economic growth structure and at the same time, mitigate the emission of Greenhouse Gases (GHG).

Suggested Citation

  • Owen Affor Maku & Promise Oghenevwede Ikpuri, 2020. "A Multivariate Analysis between Renewable Energy, Carbon Emission and Economic Growth: New Evidences from Selected Middle East and North Africa Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 440-450.
    • Handle: RePEc:eco:journ2:2020-06-58
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    More about this item

    Keywords

    Non-renewable resources; Renewable resources; Economic growth; Environment; Pollution;
    All these keywords.

    JEL classification:

    • L72 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Mining, Extraction, and Refining: Other Nonrenewable Resources
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • Q52 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Pollution Control Adoption and Costs; Distributional Effects; Employment Effects

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