CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: Dynamic simultaneous equation models

Hussain A. Bekhet, Ali Matar, Tahira Yasmin

Research output: Contribution to journalLetter

74 Citations (Scopus)

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 languageEnglish
Pages (from-to)117-132
Number of pages16
JournalRenewable and Sustainable Energy Reviews
Volume70
DOIs
Publication statusPublished - 01 Apr 2017

Fingerprint

Energy utilization
Economics
Carbon
Energy policy
Time series

All Science Journal Classification (ASJC) codes

  • Renewable Energy, Sustainability and the Environment

Cite this

@article{4645b261a7e040c5a437279f99d686ac,
title = "CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: Dynamic simultaneous equation models",
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.",
author = "{A. Bekhet}, Hussain and Ali Matar and Tahira Yasmin",
year = "2017",
month = "4",
day = "1",
doi = "10.1016/j.rser.2016.11.089",
language = "English",
volume = "70",
pages = "117--132",
journal = "Renewable and Sustainable Energy Reviews",
issn = "1364-0321",
publisher = "Elsevier Limited",

}

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

AN - SCOPUS:84997611343

VL - 70

SP - 117

EP - 132

JO - Renewable and Sustainable Energy Reviews

JF - Renewable and Sustainable Energy Reviews

SN - 1364-0321

ER -