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The Effect of Energy Consumption and Economic Growth on Co2 Emissions:Evidence from 58 Countries

Author

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  • Kais Saidi

    (Faculty of Economics and Management, University of Sfax, Street of Airport, km 4.5, LP 1088, Sfax 3018, Tunisia)

  • Sami Hammami

    (Faculty of Economics and Management, University of Sfax, Street of Airport, km 4.5, LP 1088, Sfax 3018, Tunisia)

Abstract

We investigate the impact of energy consumption, economic growth, urbanization and trade openness on carbon dioxide emissions for a global panel consisting of 58 countries, using dynamic simultaneous-equation panel data models. In this way, we end up with three region panels; namely, European and North Asian countries, Latin America and Caribbean and Middle East, North Africa, and sub-Saharan. The time component of our dataset is 1990-2012 inclusive. Our results indicate that energy consumption has a positive effects on CO2 emissions and statistically significant for the four panel. The GDP per capita has a positive and statistically significant effect on CO2 emissions for the four panel, for the Europe and North Asia countries, and for the Middle Eastern, North Africa, and sub-Saharan. Furthermore our empirical results indicate the presence of an inverted U-shaped curve between CO2 emissions and GDP per capita. Urbanization is found to have a negative and statistically significant impact on CO2 emissions for the global panel. For the Europe and North Asia and for the Middle East, North Africa, and sub-Saharan, the trade openness has a negative and statistically significant effect on the CO2 emissions.

Suggested Citation

  • Kais Saidi & Sami Hammami, 2015. "The Effect of Energy Consumption and Economic Growth on Co2 Emissions:Evidence from 58 Countries," Bulletin of Energy Economics (BEE), The Economics and Social Development Organization (TESDO), vol. 3(3), pages 91-104, September.
  • Handle: RePEc:ijr:beejor:v:3:y:2015:i:3:p:91-104
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    References listed on IDEAS

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    More about this item

    Keywords

    CO2 emissions; Energy consumption; Economic growth;

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies

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