Are global warming and economic growth compatible? Evidence from five OPEC countries?

By Ramazan Sari, Ugur Soytas. 2009

146 citations recorded by the source corpus.

In this paper, we investigate the relationship between carbon emissions, income, energy and total employment in selected OPEC countries for the period of 1971-2002. We mainly focus on the link between energy use and income. Employing the autoregressive distributed lag (ARDL) approach, we find that there is a cointegrating relationship between the variables in Saudi Arabia only. The long run forcing variables for income are determined to be employment and energy for Saudi Arabia. In Indonesia, Algeria, Nigeria, and Venezuela, there is no cointegration between income and energy. Secondly we question the long run Granger causality between carbon emissions, energy use, and income. Our results suggest that none of the countries need to sacrifice economic growth to decrease their emission levels. Indonesia and Nigeria may contribute to emissions reduction via energy conservation without negative long run effects on economic growth.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/aede02134a9b3329cf2b17e78782f126177d5615

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Citations in the corpus

Is There Really Granger Causality between Energy Use and Output? (2014, background): “The AIC, in particular, tends to over-estimate the number of lags when degrees of freedom are low and particularly when the VAR has a unit root or near unit root (Nickelsburg, 1985; Hacker & Hatemi-J, 2008; Gonzalo and Pitarakis, 2003). Zapata and Rambaldi (1997) show that three different causality ”
On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth ☆ (2010, background): “…consumption and pollutant emissions on the other (Coondoo and Dinda, 2002; Dinda, 2004; Soytas et al., 2007; Chontanawat et al., 2008; Aslanidis and Iranzo, 2009; Apergis and Payne, 2009, 2010a); Sadorsky, 2009a; Sari and Soytas, 2009; Soytas and Sari, 2009; Ozturk, 2010; Payne, 2009, 2010a,b).”
How significant is energy efficiency to mitigate CO2 emissions? Evidence from OECD countries (2018, background): “The application to CO2 emissions spurred a considerable volume of literature (see e.g., Acaravci and Ozturk, 2010; Dinda, 2004; Pao and Tsai, 2011; Sari and Soytas, 2009; Stern 2004).”
Electricity consumption–growth nexus: The case of Malaysia (2010, background): “Second, while a number of studies have been done that include Malaysia, these studies use either panel data or bivariate framework that ignores country specific effects and omitted variables biasness, respectively (Sari and Soytas, 2009; Chang et al., 2001; Stern, 2000).”
Regional total factor energy efficiency: An empirical analysis of industrial sector in China (2012, background): “Energy use is a major source of GHG emission [3-6], causing environmental problems, which is a serious question given that extreme weather conditions are spreading rapidly across China.”
Economic Complexity and Environmental Performance: Evidence from a World Sample (2019, background): “Most studies are for single countries [9, 10, 51, 112, 113, 123, 129] and only a few papers have used multicountry data to investigate this relationship, producing ambiguous results [2, 38, 71, 96, 104].”
An Econometric Analysis for CO 2 Emissions, Energy Consumption, Economic Growth, Foreign Trade and Urbanization of Japan (2012, methodology): “Ang [14], Soytas, Sari and Ewing [15], Halicioglu [16], Tamazian and Rao [17] initiated this combined line of research.”
Carbon emissions and oil consumption in Saudi Arabia (2015, background): “A large number of studies probe the relationships among carbon dioxide emissions, real GDP and energy consumption in Saudi Arabia and the Middle East [for example, Mehrara [24], Sari and Soytas [27], Narayan and Narayan [26], [5], Alkhathlan et al. [1], Alkhathlan and Javid [2], Alshehery and Bellou”