Dynamic Impacts of Economic Growth, Energy Use, Urbanization, and Trade Openness on Carbon Emissions in the United Arab Emirates

Hatem Ahmed Adela (), Wadeema BinHamoodah Aldhaheri and Ahmed Hatem Ali
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Hatem Ahmed Adela: Department of Islamic Studies, Mohamed Bin Zayed University for Humanities (Part-Time Faculty), Abu Dhabi P.O. Box 106621, United Arab Emirates
Wadeema BinHamoodah Aldhaheri: Department of Islamic Studies, Mohamed Bin Zayed University for Humanities (Part-Time Faculty), Abu Dhabi P.O. Box 106621, United Arab Emirates
Ahmed Hatem Ali: TAQA Industrialization and Energy Services, Abu Dhabi P.O. Box 51111, United Arab Emirates

Sustainability, 2025, vol. 17, issue 13, 1-21

Abstract: The United Arab Emirates has become increasingly concerned about carbon dioxide emissions due to their impact on climate change and the environment, as it is one of the top ten world oil producers. This reflects its recognition of the need for sustainable development. Therefore, this research aims to study the dynamic impact of economic growth, urbanization, energy consumption, and economic openness on CO 2 emissions, during the period 1975–2022. To capture these effects, a novel dynamic ARDL is employed to separate the impact of each variable separately. The results indicate that the effect of GDP per capita on carbon emissions is negative, as a 1% increase in economic growth leads to a decrease in carbon dioxide emissions by 0.6%. Moreover, the findings confirm that the UAE economy does not apply to the Kuznets curve in developing countries. Furthermore, the impact of energy consumption, urbanization, and trade openness is positive on CO 2 emissions, as a 1% increase in each raises CO 2 by 0.17%, 11.6%, and 1.2%, respectively. These findings are important for decision makers in the environmental field to make decisions to reduce carbon emissions by altering the impact of economic variables and spread awareness towards reducing carbon emissions.

Keywords: dynamic ARDL; economic growth; energy use; urbanization; trade openness; carbon dioxide emissions (CO 2 ); the United Arab Emirates (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2025
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