The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait

Salahuddin, Mohammad and Alam, Khorshed and Ozturk, Ilhan and Sohag, Kazi (2018) The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait. Renewable and Sustainable Energy Reviews, 81 (2). pp. 2002-2010. ISSN 1364-0321

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Abstract

This study examined the empirical effects of economic growth, electricity consumption, foreign direct investment (FDI), and financial development on carbon dioxide (CO2) emissions in Kuwait using time series data for the period 1980–2013. To achieve this goal, we applied the autoregressive distributed lag (ARDL) bounds testing approach and found that cointegration exists among the series. Findings indicate that economic growth, electricity consumption, and FDI stimulate CO2 emissions in both the short and long run. The VECM Granger causality analysis revealed that FDI, economic growth, and electricity consumption strongly Granger cause CO2 emissions. Based on these findings, the study recommends that Kuwait reduce emissions by expanding its existing Carbon Capture, Utilization, and Storage plants; capitalizing on its vast solar and wind energy; reducing high subsidies of the residential electricity scheme; and aggressively investing in energy research to build expertise for achieving electricity generation efficiency.


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Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Additional Information: Winner of the USQ Publication Excellence Awards for Journal Articles published during the period July-September 2017. Access to submitted version in accordance with the copyright policy of the publisher.
Faculty / Department / School: Current - Faculty of Business, Education, Law and Arts - School of Commerce
Date Deposited: 20 Jul 2017 00:06
Last Modified: 18 Oct 2018 01:09
Uncontrolled Keywords: cointegration; CO2 emissions; economic growth; energy consumption; GCC countries; Granger causality
Fields of Research : 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
Socio-Economic Objective: D Environment > 96 Environment > 9603 Climate and Climate Change > 960302 Climate Change Mitigation Strategies
B Economic Development > 91 Economic Framework > 9101 Macroeconomics > 910103 Economic Growth
B Economic Development > 91 Economic Framework > 9199 Other Economic Framework > 919901 Carbon and Emissions Trading
Identification Number or DOI: 10.1016/j.rser.2017.06.009
URI: http://eprints.usq.edu.au/id/eprint/32639

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