ENERGY CONSUMPTION, ECONOMIC GROWTH, AND POLLUTION IN SELECTED OPEC COUNTRIES: TESTING THE ENVIRONMENTAL KUZNETS CURVE HYPOTHESIS

Jalal Dehnavi and Amin Haghnejad

Journal of Academic Research in Economics, 2012, vol. 4, issue 2 (July), 149-166

Abstract: This study attempted to investigate empirically the causal relationships among energy consumption, pollution, and economic growth for a panel of 8 selected OPEC countries over the period 1971-2008 inspiring panel data techniques. The findings showed that in the long-run equilibrium there is a bi-directional causality between energy consumption, and co2 emissions and a uni-directional causality running from economic growth to energy consumption, and pollution. In the short- run, the causality resulted also pointed out a uni-directional causality from economic growth to co2 emissions and from energy consumption to co2 emissions, and economic growth. Finally, since economic growth causes co2 emissions both in the short-run and in the long-run, we examined the functional form of the environmental Kuznets Curve. Our findings suggested a cubic (i.e. N-shaped) relationship between economic growth and co2 emissions for the countries under analysis. Therefore, panel data analyses did not confirm the inverted u-shaped Environmental Kuznets Curve hypothesis.

Keywords: Panel cointegration; Panel causality; Energy consumption; and Environmental Kuznets Curve (search for similar items in EconPapers)
JEL-codes: O4 Q43 (search for similar items in EconPapers)
Date: 2012
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Citations: View citations in EconPapers (21)

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Persistent link: https://EconPapers.repec.org/RePEc:shc:jaresh:v:4:y:2012:i:2:p:149-166

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