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Oil exploitation and the environmental Kuznets curve

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  • Esmaeili, Abdoulkarim
  • Abdollahzadeh, Negar

Abstract

This study refers to a panel estimation of an environmental Kuznets curve (EKC) for oil to determine the factors most affecting oil exploitation in 38 oil-producing countries during 1990-2000. Control variables such as oil reserves, oil price, population, political rights, and the Gini index were used to determine its contribution to the main EKC model. The empirical results fully support the existence of an EKC for oil exploitation. Furthermore, the result indicates that the proved oil reserves has a significant and positive role in oil production, but oil price and population do not significantly affect crude oil production. Also, increased freedoms and a better income distribution will reduce the rate of oil exploitation. Thus, policies aiming at enhancing democratic society and better income distribution would be more compatible with sustainability.

Suggested Citation

  • Esmaeili, Abdoulkarim & Abdollahzadeh, Negar, 2009. "Oil exploitation and the environmental Kuznets curve," Energy Policy, Elsevier, vol. 37(1), pages 371-374, January.
  • Handle: RePEc:eee:enepol:v:37:y:2009:i:1:p:371-374
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    Cited by:

    1. Song, Ma-Lin & Zhang, Wei & Wang, Shu-Hong, 2013. "Inflection point of environmental Kuznets curve in Mainland China," Energy Policy, Elsevier, vol. 57(C), pages 14-20.
    2. Yang, Guangfei & Sun, Tao & Wang, Jianliang & Li, Xianneng, 2015. "Modeling the nexus between carbon dioxide emissions and economic growth," Energy Policy, Elsevier, vol. 86(C), pages 104-117.
    3. Nguyen-Van, Phu, 2010. "Energy consumption and income: A semiparametric panel data analysis," Energy Economics, Elsevier, vol. 32(3), pages 557-563, May.
    4. Menegaki, Angeliki N. & Tsagarakis, Konstantinos P., 2015. "Rich enough to go renewable, but too early to leave fossil energy?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1465-1477.
    5. Muhammad, Shahbaz & Faridul, Islam & Muhammad Sabihuddin, Butt, 2011. "Financial Development, Energy Consumption and CO2 Emissions: Evidence from ARDL Approach for Pakistan," MPRA Paper 30138, University Library of Munich, Germany, revised 07 Apr 2011.

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    Keywords

    Oil exploitation EKC Oil price;

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