Abstract
This study investigates the dynamic causal relationships among carbon emissions, financial development, economic growth, and energy consumption for Gulf Cooperation Council (GCC) countries from 1980 through 2011. Annual time series data and an autoregressive distributed lag (ARDL) model are used. The main contribution of this paper is that it has investigated the causes of carbon emissions by taking into account the role of financial development and economic growth in GCC countries. The results suggest long-run and causal relationships among carbon emissions, financial development, gross domestic product (GDP), and energy use in all GCC countries except United Arab Emirates (UAE). Moreover, there is long-run unidirectional causality running from carbon emissions to energy use in the case of Saudi Arabia, UAE, and Qatar. Furthermore, a one-way causal relationship from financial development to carbon emissions in the context of UAE, Oman, and Kuwait is found. The evidence suggests that financial systems should take into account environmental aspects in their current operations in these countries. The results of this study may be of great importance for policy and decision makers in developing energy policies for GCC countries that contribute to curbing carbon emissions while preserving economic growth.
| Original language | English |
|---|---|
| Pages (from-to) | 117-132 |
| Number of pages | 16 |
| Journal | Renewable and Sustainable Energy Reviews |
| Volume | 70 |
| DOIs | |
| Publication status | Published - 01 Apr 2017 |
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All Science Journal Classification (ASJC) codes
- Renewable Energy, Sustainability and the Environment
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CO2 emissions, energy consumption, economic growth, and financial development in GCC countries : Dynamic simultaneous equation models. / A. Bekhet, Hussain; Matar, Ali; Yasmin, Tahira.
In: Renewable and Sustainable Energy Reviews, Vol. 70, 01.04.2017, p. 117-132.Research output: Contribution to journal › Letter
TY - JOUR
T1 - CO2 emissions, energy consumption, economic growth, and financial development in GCC countries
T2 - Dynamic simultaneous equation models
AU - A. Bekhet, Hussain
AU - Matar, Ali
AU - Yasmin, Tahira
PY - 2017/4/1
Y1 - 2017/4/1
N2 - This study investigates the dynamic causal relationships among carbon emissions, financial development, economic growth, and energy consumption for Gulf Cooperation Council (GCC) countries from 1980 through 2011. Annual time series data and an autoregressive distributed lag (ARDL) model are used. The main contribution of this paper is that it has investigated the causes of carbon emissions by taking into account the role of financial development and economic growth in GCC countries. The results suggest long-run and causal relationships among carbon emissions, financial development, gross domestic product (GDP), and energy use in all GCC countries except United Arab Emirates (UAE). Moreover, there is long-run unidirectional causality running from carbon emissions to energy use in the case of Saudi Arabia, UAE, and Qatar. Furthermore, a one-way causal relationship from financial development to carbon emissions in the context of UAE, Oman, and Kuwait is found. The evidence suggests that financial systems should take into account environmental aspects in their current operations in these countries. The results of this study may be of great importance for policy and decision makers in developing energy policies for GCC countries that contribute to curbing carbon emissions while preserving economic growth.
AB - This study investigates the dynamic causal relationships among carbon emissions, financial development, economic growth, and energy consumption for Gulf Cooperation Council (GCC) countries from 1980 through 2011. Annual time series data and an autoregressive distributed lag (ARDL) model are used. The main contribution of this paper is that it has investigated the causes of carbon emissions by taking into account the role of financial development and economic growth in GCC countries. The results suggest long-run and causal relationships among carbon emissions, financial development, gross domestic product (GDP), and energy use in all GCC countries except United Arab Emirates (UAE). Moreover, there is long-run unidirectional causality running from carbon emissions to energy use in the case of Saudi Arabia, UAE, and Qatar. Furthermore, a one-way causal relationship from financial development to carbon emissions in the context of UAE, Oman, and Kuwait is found. The evidence suggests that financial systems should take into account environmental aspects in their current operations in these countries. The results of this study may be of great importance for policy and decision makers in developing energy policies for GCC countries that contribute to curbing carbon emissions while preserving economic growth.
UR - http://www.scopus.com/inward/record.url?scp=84997611343&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84997611343&partnerID=8YFLogxK
U2 - 10.1016/j.rser.2016.11.089
DO - 10.1016/j.rser.2016.11.089
M3 - Letter
VL - 70
SP - 117
EP - 132
JO - Renewable and Sustainable Energy Reviews
JF - Renewable and Sustainable Energy Reviews
SN - 1364-0321
ER -