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Determinants of Carbon Dioxide Emissions: New Empirical Evidence from MENA Countries

Author

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  • Nizar Harrathi

    (Department of Economics, College of Business Administration, King Saud University, P.O. Box 71115 Riyadh 11587, Saudi Arabia.)

  • Ahmed Almohaimeed

    (Department of Economics, College of Business Administration, King Saud University, P.O. Box 71115 Riyadh 11587, Saudi Arabia.)

Abstract

The paper emplyos the Pooled Mean Group (PMG) estimation to investigate empirically the relationship among carbon dioxide (CO2) emissions and potential determinants for a panel of 18 MENA countries during the period 1980-2018. The good properties in terms of consistency and efficiency of the coefficient estimates make the PMG approach very useful for examining the determinants of pollution emissions in the framework of dynamic heterogeneous panel data models over both the long-and short-run. Unlike the extant literature on MENA economies, many determinants are included in the analysis to avoid the bias problem of omitted variables. Three energy sources and two classes of sub-panels according to regional proximities and oil wealth are considered in order to provide a sensitivity check on the findings and to make the analysis more homogeneous. The results reveal long-run relationships between pollution emissions and the selected variables. All determinants are found to be statistically significant for all panels and energy sources over the short-run. However, some variables are not significant determinants over the long-run. The Environment Kuznet’s Curve (EKC) hypothesis is supported only for the panel of non-oil countries, which has meaningful implications and reveals the importance of splitting the global panel in order to appropriately examine the EKC hypothesis and conduct policy debates according to the findings of each panel. The obtained results provide important policy implications.

Suggested Citation

  • Nizar Harrathi & Ahmed Almohaimeed, 2022. "Determinants of Carbon Dioxide Emissions: New Empirical Evidence from MENA Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 469-482.
  • Handle: RePEc:eco:journ2:2022-01-59
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    More about this item

    Keywords

    CO2 Emissions; Energy Sources; EKC Hypothesis; Dynamic Panel Data Model; MENA Region;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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