Innovations and the CO 2 Emissions Nexus in the MENA Region: A Spatial Analysis

Haider Mahmood (), Maham Furqan, Najia Saqib, Anass Hamadelneel Adow and Muzaffar Abbas
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Haider Mahmood: Department of Finance, College of Business Administration, Prince Sattam bin Abdulaziz University, Alkharj 11942, Saudi Arabia
Maham Furqan: School of Public Policy, College of Agricultural Sciences, Oregon State University, Corvallis, OR 97331, USA
Najia Saqib: Department of Finance, College of Business Administration, Prince Sultan University, Riyadh 11586, Saudi Arabia
Anass Hamadelneel Adow: Department of Accounting, College of Business Administration, Prince Sattam bin Abdulaziz University, Alkharj 11942, Saudi Arabia
Muzaffar Abbas: Department of Management, College of Business Administration, Prince Sattam bin Abdulaziz University, Alkharj 11942, Saudi Arabia

Sustainability, 2023, vol. 15, issue 13, 1-20

Abstract: Patents support technological innovations in any economy and would also support a clean environment. We investigate the effects of economic growth, patents, industrialization, and urbanization on CO 2 emissions in 17 Middle East and North Africa (MENA) economies by applying spatial econometrics. We substantiate the Environment Kuznets Curve (EKC) in the domestic economies and the whole MENA region as per direct and total estimates. Moreover, urbanization increases CO 2 emissions in local economies and reduces neighboring nations’ emissions. The total effect of urbanization is found to be insignificant. Industrial value added increases CO 2 emissions in domestic and neighboring countries, as well as in the whole MENA region. Patents increase CO 2 emissions in domestic economies. However, patents reduce CO 2 emissions in neighboring countries and the MENA region. Thus, patents have a pleasant effect on the environment in the whole MENA region. It is suggested that the MENA economies focus more on patents to reduce CO 2 emissions. Moreover, urbanization and the industrial sector should be checked to protect the environment.

Keywords: CO 2 emissions; patents; urbanization; economic growth; the EKC (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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