Energy consumption, CO2 emissions and economic growth in MENA countries

  • Received July 13, 2020;
    Accepted December 4, 2020;
    Published December 16, 2020
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ee.11(1).2020.12
  • Article Info
    Volume 11 2020, Issue #1, pp. 133-150
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Creative Commons License
This work is licensed under a Creative Commons Attribution 4.0 International License

This study investigates the relationship between economic growth, final consumption, investment, energy use and CO2  emissions in two groups of Middle East and North Africa (MENA) countries: Oil Poor Countries (OPC) and Oil Rich Countries (ORC). It is assumed and verified that the structural relationship between GDP growth, energy use and CO2  emissions is different in these two groups of countries. FGLS panel estimations were carried out over the period 1974–2014. In ORC, no significant relationships are observed between energy use and GDP, whereas CO2 emissions and GDP are positively linked. In OPC, there are opposite connections: a positive link between GDP and energy use, whereas the impact of CO2  emissions on GDP tends to be negative. In both groups of countries, a positive and bi-directional link is observed between energy use and CO2  emissions. The strength of this link is twice bigger in OPC than in ORC. This indicates that CO2 reduction policies conducted through energy use control (quantitative and qualitative) will have higher effect in OPC than in ORC. This also shows that the relationships between economic growth, energy use and CO2  emissions differ noticeably and structurally between OPC and ORC. These results provide new insights into the opportunities and threats faced by CO2 reduction policies in OPCs and ORCs.

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  • JEL Classification (Paper profile tab)
    Q43, Q51, C01, O44
  • References
    43
  • Tables
    4
  • Figures
    4
    • Figure 1. Graphical representation of main relationships between variables in ORC and OPC (figures: ORC/OPC)
    • Figure 2. Similar links in ORC and OPC (same sign and same statistical significance – not necessarily the same size – )
    • Figure 3. ORC specificities (different sign or significant in ORC but not significant in OPC)
    • Figure 4. OPC specificities (different sign or significant in OPC but not significant in ORC)
    • Table 1. Descriptive data analysis
    • Table 2. Estimation results
    • Table A1. Definitions of the World Development Indicators used in the study
    • Table B1. Panel-corrected: rhos
    • Conceptualization
      Ali Maalej, Alexandre Cabagnols
    • Data curation
      Ali Maalej, Alexandre Cabagnols
    • Formal Analysis
      Ali Maalej, Alexandre Cabagnols
    • Funding acquisition
      Ali Maalej, Alexandre Cabagnols
    • Investigation
      Ali Maalej, Alexandre Cabagnols
    • Methodology
      Ali Maalej, Alexandre Cabagnols
    • Resources
      Ali Maalej, Alexandre Cabagnols
    • Supervision
      Ali Maalej, Alexandre Cabagnols
    • Validation
      Ali Maalej, Alexandre Cabagnols
    • Writing – original draft
      Ali Maalej, Alexandre Cabagnols
    • Writing – review & editing
      Ali Maalej, Alexandre Cabagnols