Is the long-run relationship between economic growth, electricity consumption, carbon dioxide emissions and financial development in Gulf Cooperation Council Countries robust?

Salahuddin, Mohammad and Gow, Jeff and Ozturk, Ilhan (2015) Is the long-run relationship between economic growth, electricity consumption, carbon dioxide emissions and financial development in Gulf Cooperation Council Countries robust? Renewable and Sustainable Energy Reviews, 51. pp. 317-326. ISSN 1364-0321

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Abstract

The relationship between carbon dioxide emissions, economic growth, electricity consumption and financial development in the Gulf Cooperation Council (GCC) countries is investigated in this study using panel data for the period of 1980-2012. A number of econometric techniques: dynamic ordinary least squares (DOLS), fully modified ordinary least squares (FMOLS) and the dynamic fixed effect model (DFE) are applied in order to estimate the long-run relationship between the variables. The long-run relationship is found to be robust across these different econometric specifications. No significant short-run significant relationship was observed. Electricity consumption and economic growth have a positive long run relationship with carbon dioxide (CO2) emissions whilst a negative and significant relationship was found between CO2 emissions and financial development. The findings imply that electricity consumption and economic growth stimulate CO2 emissions in GCC countries while financial development reduces it. Granger causality results reveal that there is a bidirectional causal link between economic growth and CO2 emissions and a unidirectional causal link running from electricity consumption to CO2 emissions. However, there is no causal link between financial development and CO2 emissions. Also, impulse response and variance decomposition analysis outline forecasted impacts of economic growth and electricity consumption on future CO2 emissions.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Submitted version deposited in accordance with the copyright policy of the publisher.
Faculty/School / Institute/Centre: Historic - Australian Digital Futures Institute (8 Dec 2010 - 6 Jul 2016)
Faculty/School / Institute/Centre: Historic - Australian Digital Futures Institute (8 Dec 2010 - 6 Jul 2016)
Date Deposited: 23 Jun 2015 04:51
Last Modified: 08 Feb 2021 05:49
Uncontrolled Keywords: CO2 emissions, economic growth, electricity consumption, GCC countries, financial development
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140205 Environment and Resource Economics
16 Studies in Human Society > 1605 Policy and Administration > 160507 Environment Policy
09 Engineering > 0904 Chemical Engineering > 090401 Carbon Capture Engineering (excl. Sequestration)
Fields of Research (2020): 38 ECONOMICS > 3801 Applied economics > 380105 Environment and resource economics
44 HUMAN SOCIETY > 4407 Policy and administration > 440704 Environment policy
40 ENGINEERING > 4004 Chemical engineering > 400401 Carbon capture engineering (excl. sequestration)
Socio-Economic Objectives (2008): D Environment > 96 Environment > 9607 Environmental Policy, Legislation and Standards > 960702 Consumption Patterns, Population Issues and the Environment
Identification Number or DOI: https://doi.org/10.1016/j.rser.2015.06.005
URI: http://eprints.usq.edu.au/id/eprint/27414

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