The link between environmental quality, economic growth, and energy use: new evidence from five OPEC countries

Saidi, Kais and Rahman, Mohammad Mafizur (2021) The link between environmental quality, economic growth, and energy use: new evidence from five OPEC countries. Environment Systems and Decisions, 41. pp. 3-20. ISSN 2194-5403


Abstract

This paper aims to explore the relationships between environmental quality, economic growth, and energy use. A panel data set of 25 years (1990–2014) for five OPEC countries (Algeria, Nigeria, Indonesia, Saudi Arabia, and Venezuela) is used, and panel unit root tests, panel cointegration tests, panel Granger causality tests, fully modified ordinary Least square (FMOLS), and dynamic ordinary least square (DOLS) methods are employed as estimation strategies. Our results show that in the longrun, there are two-way causal relationships between GDP and energy consumption for all countries. Bidirectional causal relationships between GDP and CO2 emissions are also observed in all countries except Algeria. The same relationships are also observed between energy consumption and CO2 emissions in all countries with an exception in Venezuela where unidirectional causality running from CO2 to energy consumption is found. The impact of GDP on the CO2 emissions is the highest in Saudi Arabia followed by Venezuela, Nigeria, and Indonesia. The effect of energy use on the CO2 emissions is the greatest in Algeria followed by Indonesia and Nigeria


Statistics for USQ ePrint 38650
Statistics for this ePrint Item
Item Type: Article (Commonwealth Reporting Category C)
Refereed: Yes
Item Status: Live Archive
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Faculty/School / Institute/Centre: Historic - Faculty of Business, Education, Law and Arts - School of Commerce (1 Jul 2013 - 17 Jan 2021)
Date Deposited: 29 Jun 2020 02:01
Last Modified: 21 Apr 2021 06:38
Uncontrolled Keywords: economic growth; energy use; CO2 emissions; VECM
Fields of Research (2008): 14 Economics > 1402 Applied Economics > 140202 Economic Development and Growth
14 Economics > 1403 Econometrics > 140304 Panel Data Analysis
05 Environmental Sciences > 0502 Environmental Science and Management > 050299 Environmental Science and Management not elsewhere classified
Fields of Research (2020): 44 HUMAN SOCIETY > 4404 Development studies > 440499 Development studies not elsewhere classified
38 ECONOMICS > 3802 Econometrics > 380204 Panel data analysis
41 ENVIRONMENTAL SCIENCES > 4104 Environmental management > 410499 Environmental management not elsewhere classified
Socio-Economic Objectives (2008): B Economic Development > 85 Energy > 8599 Other Energy > 859999 Energy not elsewhere classified
D Environment > 96 Environment > 9603 Climate and Climate Change > 960399 Climate and Climate Change not elsewhere classified
Identification Number or DOI: https://doi.org/10.1007/s10669-020-09762-3
URI: http://eprints.usq.edu.au/id/eprint/38650

Actions (login required)

View Item Archive Repository Staff Only