The relationship between real GDP, CO2 emissions, and energy use in the GCC countries: A time series approach

Cogent Economics and Finance

Volumn 4, Issue 1, 2016, Pages

  Magazzino, Cosimo ^a,b  

^a ROMA TRE UNIVERSITY   (Italy)

^b Royal Economic Society   (Italy)

Author keywords

CO2 emissions; Economic growth; Energy use; GCC countries; Time series

Indexed keywords

EID: 85013580566     PISSN: None     EISSN: 23322039     Source Type: Journal    
DOI: 10.1080/23322039.2016.1152729     Document Type: Article

References (74)

1. Al-Iriani, M. A. (2006). Energy-GDP relationship revisited: An example from GCC countries using panel causality. Energy Policy, 34, 3342-3350. http://dx.doi.org/10.1016/j.enpol.2005.07.005
2. 2 emission and economic growth in MENA countries. Energy, 36, 6165-6171. http://dx.doi.org/10.1016/j.energy.2011.07.048
3. Alsahlawi, M. A. (2013). Measuring energy efficiency in GCC countries using data envelopment analysis. The Journal of Business Inquiry, 12, 15-30.
4. Alshehry, A. S., & Belloumi, M. (2015). Energy consumption, carbon dioxide emissions and economic growth: The case of Saudi Arabia. Renewable & Sustainable Energy Reviews, 41, 237-247.
5. Altaee, H. H. A., & Adam, M. H. M. (2013). Electricity consumption-GDP Nexus in Bahrain: A time series analysis. Journal of Economics and Sustainable Development, 4, 42-51.
6. Arouri, M. H., Ben Youssef, A., M’henni, H., & Rault, C. (2012). Energy consumption, economic growth and CO2 emissions in Middle East and North African countries. Energy Policy, 45, 342-349. http://dx.doi.org/10.1016/j.enpol.2012.02.042
7. Arouri, M. H., & Rault, C. (2012). Oil prices and stock markets in GCC countries: Empirical evidence from panel analysis. International Journal of Finance & Economics, 17, 242-253.
8. Barros, C. P., Gil-Alana, L. A., & Payne, J. (2011). An analysis of oil production by OPEC countries: Persistence, breaks, and outliers. Energy Policy, 39, 442-453. http://dx.doi.org/10.1016/j.enpol.2010.10.024
9. Bo, S. (2011). A literature survey on environmental Kuznets curve. Energy Procedia, 5, 1322-1325. http://dx.doi.org/10.1016/j.egypro.2011.03.229
10. Boussena, S. (1994). OPEC’s learning process. Energy Studies Review, 6, 61-72.
11. Caporale, G. M., & Pittis, N. (1999). Efficient estimation of cointegrating vectors and testing for causality in vector autoregressions. Journal of Economic Surveys, 13, 3-35.
12. Charfeddine, L., & Ben Khediri, K. (2016). Financial development and environmental quality in UAE: Cointegration with structural breaks. Renewable and Sustainable Energy Reviews, 55, 1322-1335. http://dx.doi.org/10.1016/j.rser.2015.07.059
13. Cinti, V. (2011). The GCC countries’ growth beyond oil: The special case of Saudi Arabia. World Review of Business Research, 1, 136-152.
14. Clemente, J., Montañés, A., & Reyes, M. (1998). Testing for a unit root in variables with a double change in the mean. Economics Letters, 59, 175-182. http://dx.doi.org/10.1016/S0165-1765(98)00052-4
15. Damette, O., & Seghir, M. (2013). Energy as a driver of growth in oil exporting countries? Energy Economics, 37, 193-199. http://dx.doi.org/10.1016/j.eneco.2012.12.011
16. Dickey, D. A., & Fuller, W. A. (1979). Distribution of the estimators for autoregressive time series with a unit root. Journal of the American Statistical Association, 74, 427-431.
17. Elliott, G., Rothenberg, T. J., & Stock, J. H. (1996). Efficient tests for an autoregressive unit root. Econometrica, 64, 813-836. http://dx.doi.org/10.2307/2171846
18. Engle, R. E., & Granger, C. W. J. (1987). Co-integration and error correction: Representation, estimation, and testing. Econometrica, 55, 251-276. http://dx.doi.org/10.2307/1913236
19. 2 emissions: Evidence from panel data for MENA region. International Journal of Energy Economics and Policy, 2, 71-81.
20. 2 emissions, GDP, energy consumption, trade openness and urbanization for MENA countries. MPRA Paper, 49258. Germanwatch. (2013). The climate change performance index 2013. Bonn: Author.
21. Granger, C. W. J. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica, 37, 424-438. http://dx.doi.org/10.2307/1912791
22. Gregory, A. W., & Hansen, B. E. (1996). Residual-based tests for cointegration in models with regime shifts. Journal of Econometrics, 70, 99-126. http://dx.doi.org/10.1016/0304-4076(69)41685-7
23. Haghnejad, A., & Dehnavi, J. (2012). Energy consumption, economic growth, and pollution in selected OPEC countries: Testing the environmental Kuznets curve hypothesis. Journal of Academic Research in Economics, 2, 149-166.
24. Hamdi, H., & Sbia, R. (2013). A note on electricity-growth nexus in Bahrain. Bulletin of Energy Economics, 1, 28-34.
25. Hamdi, H., Sbia, R., & Shahbaz, M. (2014). The nexus between electricity consumption and economic growth in Bahrain. Economic Modelling, 38, 227-237. http://dx.doi.org/10.1016/j.econmod.2013.12.012
26. Hertog, S., & Luciani, G. (2009, November, 6). Energy and sustainability policies in the GCC. London: The Centre for the Study of Global Governance. Page 18-20
27. Jammazi, R., & Aloui, C. (2015). On the interplay between energy consumption, economic growth and CO2 emission nexus in the GCC countries: A comparative analysis through wavelet approaches. Renewable & Sustainable Energy Reviews, 51, 1737-1751.
28. Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration with applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52, 169-210.
29. Kuznets, S. (1955). Economic growth and income inequality. American Economic Review, 45(1), 1-28.
30. Kwiatkowski, D., Phillips, P. C. B., Schmidt, P., & Shin, Y. (1992). Testing the null hypothesis of stationarity against the alternative of a unit root, Journal of Econometrics, 54, 159-178. http://dx.doi.org/10.1016/0304-4076(92)90104-Y
31. Lee, C. C., & Chang, C. P. (2008). Energy consumption and economic growth in Asian economies: A more comprehensive analysis using panel data. Resource and Energy Economics, 30, 50-65. http://dx.doi.org/10.1016/j.reseneeco.2007.03.003
32. Lee, K. C., & Pesaran, M. H. (1993). Persistence profiles and business cycle fluctuations in a disaggregated model of UK output growth. Ricerche Economiche, 47, 293-322. http://dx.doi.org/10.1016/0035-5054(93)90032-X
33. Lee, K. C., Pesaran, M. H., & Pierse, R. G. (1992). Persistence of Shocks and its Sources in Multisectoral Model of UK Output Growth. Economic Journal, 102, 342-356.
34. Lütkepohl, H. (1991). Introduction to multiple time series analysis. Berlin: Springer-Verlag. http://dx.doi.org/10.1007/978-3-662-02691-5
35. Magazzino, C. (2014a). Electricity demand. GDP and employment: Evidence from Italy, frontiers in energy, 8, 31-40.
36. Magazzino, C. (2014b). Energy consumption and GDP in Italy. Environment, Development and Sustainability, 16, 137-153.
37. 2 emissions, and energy use in Israel. The International Journal of Sustainable Development and World Ecology, 22, 89-97.
38. 2 emissions, economic growth and energy use in the Middle East countries: a panel VAR approach, Energy Sources, Part B. Magazzino, C. (in press-b). Is per capita energy use stationary? Panel data evidence for the EMU countries. Energy, Exploration & Exploitation.
39. Maslyuk, S., & Smyth, R. (2009). Non-linear unit root properties of crude oil production. Energy Economics, 31, 109-118. http://dx.doi.org/10.1016/j.eneco.2008.09.004
40. Mehrara, M. (2007a). Energy consumption and economic growth: The case of oil exporting countries. Energy Policy, 35, 2939-2945. http://dx.doi.org/10.1016/j.enpol.2006.10.018
41. Mehrara, M. (2007b). Energy-GDP relationship for oil-exporting countries: Iran, Kuwait and Saudi Arabia. OPEC Energy Review, 31(1), 1-16.
42. Mohamad, N. H., & Said, F. B. (2011). Comparing macroeconomic performance of OIC member countries. International Journal of Economics and Management Sciences, 1, 90-104.
43. Narayan, P. K., Narayan, S., & Smyth, R. (2008). Are oil shocks permanent or temporary? Panel data evidence from crude oil and NGL production in 60 countries. Energy Economics, 30, 919-936. http://dx.doi.org/10.1016/j.eneco.2007.07.005
44. Narayan, P. K., & Smyth, R. (2009). Multivariate granger causality between electricity consumption, exports and GDP: Evidence from a panel of Middle Eastern countries. Energy Policy, 37, 229-236. http://dx.doi.org/10.1016/j.enpol.2008.08.020
45. Oh, W., & Lee, K. (2004). Causal relationship between energy consumption and GDP revisited: The case of Korea 1970-1999. Energy Economics, 26, 51-59. http://dx.doi.org/10.1016/S0140-9883(03)00030-6
46. Omri, A. (2013). CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models. Energy Economics, 40, 657-664. http://dx.doi.org/10.1016/j.eneco.2013.09.003
47. Omri, A. (2014). An international literature survey on energyeconomic growth nexus: Evidence from country-specific studies. Renewable & Sustainable Energy Reviews, 38, 951-959.
48. Omri, A., Daly, S., Rault, C., & Chaibi, A. (2015). Financial development, environmental quality, trade and economic growth: What causes what in MENA countries. Energy Economics, 48, 242-252. http://dx.doi.org/10.1016/j.eneco.2015.01.008
49. Osterwald-Lenum, M. (1992). A note with quantiles of the asymptotic distribution of the maximum likelihood cointegration rank test statistics. Oxford Bulletin of Economics and Statistics, 54, 461-472. http://dx.doi.org/10.1111/obes.1992.54.issue-3
50. Ozturk, I. (2010). A literature survey on energy-growth nexus. Energy Policy, 38, 340-349. http://dx.doi.org/10.1016/j.enpol.2009.09.024
51. Ozturk, I., & Acaravci, A. (2011). Electricity consumption and real GDP causality nexus: Evidence from ARDL bounds testing approach for 11 MENA countries. Applied Energy, 88, 2885-2892. http://dx.doi.org/10.1016/j.apenergy.2011.01.065
52. Ozturk, I., Aslan, A., & Kalyoncu, H. (2010). Energy consumption and economic growth relationship: Evidence from panel data for low and middle income countries. Energy Policy, 38, 4422-4428. http://dx.doi.org/10.1016/j.enpol.2010.03.071
53. Papadopoulou, A.G., Afshari, A., Anastasopoulos, G., & Psarras, J. (2013, December). Investigating DSM solutions’ applicability in the GCC environment. Gulf Research Center Gulf Papers.
54. Payne, J. E. (2010). A survey of the electricity consumptiongrowth literature. Applied Energy, 87, 723-731. http://dx.doi.org/10.1016/j.apenergy.2009.06.034
55. Pesaran, H. H., & Shin, Y. (1998). Generalized impulse response analysis in linear multivariate models. Economics Letters, 58, 17-29. http://dx.doi.org/10.1016/S0165-1765(97)00214-0
56. Pesaran, H. M., & Shin, Y. (1999). Autoregressive distributed lag modelling approach to cointegration analysis. In S. Storm (Ed.), Econometrics and economic theory in the 20th century: The Ragnar Frisch Centennial Symposium (pp 371-413). Cambridge: Cambridge University Press.
57. Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16, 289-326. http://dx.doi.org/10.1002/(ISSN)1099-1255
58. Phillips, P. C. B., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75, 335-346. http://dx.doi.org/10.1093/biomet/75.2.335
59. Ramanathan, R. (2006). Evaluating the comparative performance of countries of the Middle East and North Africa: A DEA application. Socio-Economic Planning Sciences, 40, 156-167. http://dx.doi.org/10.1016/j.seps.2004.10.002
60. Rambaldi, A. N. (1997). Multiple time series models and testing for causality and exogeneity: A review (Working Papers in Econometrics and Applied Statistics). Armidale: Department of Econometrics, The University of New England.
61. Rambaldi, A. N., & Doran, H. E. (1996), Testing for Granger non-causality in cointegrated systems made easy (Working Papers in Econometrics and Applied Statistics, Department of Econometrics, The University of New England, p. 88).
62. Raouf, M. (2008). Climate change threats, opportunities, and the GCC countries. The Middle East Institute Policy Brief, 12.
63. Reinsel, G. C., & Ahn, S. K. (1992). Vector autoregressive models with unit roots and reduced rank structure: Estimation. Likelihood ratio test, and forecasting. Journal of Time Series Analysis, 13, 353-375. http://dx.doi.org/10.1111/jtsa.1992.13.issue-4
64. Saidi, K., & Hammami, S. (2015). The impact of CO2 emissions and economic growth on energy consumption in 58 countries. Energy Reports, 1, 62-70. http://dx.doi.org/10.1016/j.egyr.2015.01.003
65. 2 emissions in Gulf Cooperation Council countries. Energy, 73, 44-58. http://dx.doi.org/10.1016/j.energy.2014.05.054
66. Salahuddin, M., Gow, J., & Ozturk, I. (2015). Is the long-run relationship between economic growth, electricity consumption, carbon dioxide emissions and financial development in Gulf Cooperation Council Countries robust? Renewable & Sustainable Energy Reviews, 51, 317-326.
67. Sbia, R., Shahbaz, M., & Hamdi, H. (2014). A contribution of foreign direct investment, clean energy, trade openness, carbon emissions and economic growth to energy demand in UAE. Economic Modelling, 36, 191-197. http://dx.doi.org/10.1016/j.econmod.2013.09.047
68. Shahateet, M. I. (2014). Modeling economic growth and energy consumption in Arab countries: Cointegration and causality analysis. International Journal of Energy Economics and Policy, 4, 349-359.
69. Squalli, J. (2007). Electricity consumption and economic growth: Bounds and causality analyses of OPEC members. Energy Economics, 29, 1192-1205. http://dx.doi.org/10.1016/j.eneco.2006.10.001
70. Squalli, J., & Wilson, K. (2006, June). A bounds analysis of electricity consumption and economic growth in the GCC Economic & Policy Research Unit Working Paper Series, 06-09.
71. Toda, H. Y., & Yamamoto, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of Econometrics, 66, 225-250. http://dx.doi.org/10.1016/0304-4076(94)01616-8
72. Wolde-Rufael, Y. (2005). Energy demand and economic growth: The African experience. Journal of Policy Modeling, 27, 891-903. http://dx.doi.org/10.1016/j.jpolmod.2005.06.003
73. Zapata, H. O., & Rambaldi, A. N. (1997). Monte Carlo evidence on cointegration and causation. Oxford Bulletin of Economics and Statistics, 59, 285-298. http://dx.doi.org/10.1111/obes.1997.59.issue-2
74. Zivot, E., & Andrews, D. (1992). Further evidence on the Great Crash, the oil price shock, and the unit-root hypothesis. Journal of Business and Economic Statistics, 10, 251-270.