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Testing the Kuznets Curve hypothesis for Qatar: A comparison between carbon dioxide and ecological footprint

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  • Mrabet, Zouhair
  • Alsamara, Mouyad

Abstract

This paper explores the validity of the Environmental Kuznets Curve (EKC) using two different environment indicators: the carbon dioxide emissions (CO2) and the ecological footprint (EF) in Qatar over the 1980–2011 period. To this end, we investigate the impact of real gross domestic product (RGDP), the square of RGDP, the energy use, the financial development and the trade openness on the CO2 emissions and the EF. We employ the autoregressive distributed lag (ARDL) model with the presence of unknown structural breaks in order to study short-run and long-run elasticity between the variables. The findings infer that there is a long-run relationship among the selected variables with a shift in the cointegration vector in 1991 and 2000. The empirical result indicates that the inverted U-shaped hypothesis is not valid in Qatar when we use the CO2 emissions, whereas the inverted U-shaped held when using the EF. Furthermore, the error correction results confirm that the convergence towards the long-run equilibrium will mostly occur within one year after a short run shock. Generally, the findings suggest that Qatar should invest more in efficient energy and continue sustained its growth. Moreover, more efforts are needed for diversification particularly in technology-intensive and environment-friendly industries to improve environmental quality.

Suggested Citation

  • Mrabet, Zouhair & Alsamara, Mouyad, 2017. "Testing the Kuznets Curve hypothesis for Qatar: A comparison between carbon dioxide and ecological footprint," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 1366-1375.
  • Handle: RePEc:eee:rensus:v:70:y:2017:i:c:p:1366-1375
    DOI: 10.1016/j.rser.2016.12.039
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    Keywords

    Environment Kuznets Curve (EKC); CO2 emissions; Ecological footprint; Energy consumption; Economic growth; ARDL bounds tests with structural breaks;
    All these keywords.

    JEL classification:

    • F18 - International Economics - - Trade - - - Trade and Environment
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models

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