Causal nexus in industrialization, urbanization, trade openness, and carbon emissions: empirical evidence from OPEC economies

Muhammad Azam, Zia Ur Rehman and Yusnidah Ibrahim (yusnidah.ibrahim@aiu.edu.my)
Additional contact information
Zia Ur Rehman: Qurtuba University of Science and Information Technology
Yusnidah Ibrahim: Albukhary International University

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, 2022, vol. 24, issue 12, No 22, 13990-14010

Abstract: Abstract We need a desirable level of sustainable national economic development without environmental degradation. The key objective of this study is to explore the causal nexus in urbanization, industrialization, energy use, national income, international trade, and environmental pollution by carbon dioxide (CO2) emissions in the six-member countries from the OPEC (Organization of the Petroleum Exporting Countries) over the period 1975–2018. This study is based on the modified empirical model of Kaya Identity introduced by Kaya (Impact of carbon dioxide emission control on GNP growth: interpretation of proposed scenarios, Intergovernmental Panel on Climate Change/Response Strategies Working Group, 1989). After checking the data for stationarity properties, we employed a fixed-effects estimator prefers by the Hausman test. We, in addition, employed the method of robust least squares to confirm the estimates. The empirical estimates reveal that regressors namely urbanization, industrialization, international trade, and energy use increase environmental pollution, while the impacts of income found are opposite. The Granger causality test exhibits a bidirectional causality among national income and CO2, urbanization and CO2, energy use and urbanization national income and urbanization, national income and industrialization, urbanization and industrialization, and exports and urbanization. These findings advise that the management authorities of OPEC countries need to adopt environmentally friendly policies, while regulating environmental pollution to accomplish sustainable economic development in the region. Graphical abstract Source: Compiled by authors from the present entire study

Keywords: Industrialization; Urbanization; CO2 emissions; Trade; Energy use; National income; OPEC economies (search for similar items in EconPapers)
JEL-codes: F1 N5 P Q5 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
http://link.springer.com/10.1007/s10668-021-02019-2 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:endesu:v:24:y:2022:i:12:d:10.1007_s10668-021-02019-2

Ordering information: This journal article can be ordered from
http://www.springer.com/economics/journal/10668

DOI: 10.1007/s10668-021-02019-2

Access Statistics for this article

Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development is currently edited by Luc Hens

More articles in Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development from Springer
Bibliographic data for series maintained by Sonal Shukla (sonal.shukla@springer.com) and Springer Nature Abstracting and Indexing (indexing@springernature.com).