CO2, quality of life and economic growth in mena countries

Tuncer Gövdeli

doi:10.37880/cumuiibf.500829

Research Article

CO2, quality of life and economic growth in mena countries

Year 2019, Volume: 20 Issue: 1, 281 - 292, 31.05.2019

Tuncer Gövdeli

Abstract

This paper examines the
nexus between CO₂ emissions, quality of life and economic growth in
12 MENA countries over the period of 1970–2014. Empirical results show that
there is unidirectional causality from CO₂ emissions to economic
growth. However, there is unidirectional causality from economic growth to
quality of life. There is also bidirectional causality between CO₂
emissions and quality of life. This study shows that environmental policies
need to recognize differences in MENA countries in order to increase
sustainable economic growth and quality of life.

Keywords

CO2 Emissions, Quality of Life, Economic Growth, MENA Countries

References

AHMAD, N., DU, L., LU, J., WANG, J., LI, H. Z., & Hashmi, M. Z. (2017). Modelling the CO2 emissions and economic growth in Croatia: Is there any environmental Kuznets curve?. Energy, 123, 164-172.
ALI, S., ANWAR, S., & NASREEN, S. (2017). Renewable and Non-Renewable Energy and its Impact on Environmental Quality in South Asian Countries. Forman Journal of Economic Studies, 13, 177-194.
ALKHATHLAN, K., & JAVID, M. (2013). Energy consumption, carbon emissions and economic growth in Saudi Arabia: An aggregate and disaggregate analysis. Energy Policy, 62, 1525-1532.
APERGIS, N., PAYNE, J. E., MENYAH, K., & Wolde-RUFAEL, Y. (2010). On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth. Ecological Economics, 69(11), 2255-2260.
ATASOY, B. S. (2017). Testing the environmental Kuznets curve hypothesis across the US: Evidence from panel mean group estimators. Renewable and Sustainable Energy Reviews, 77, 731-747.
AZAM, M. (2016). Does environmental degradation shackle economic growth? A panel data investigation on 11 Asian countries. Renewable and Sustainable Energy Reviews, 65, 175-182.
AZLINA, A. A., LAW, S. H., & MUSTAPHA, N. H. N. (2014). Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia. Energy Policy, 73, 598-606.
BORHAN, H., AHMED, E. M., & HITAM, M. (2018). Co2, Quality of Life and Economic Growth in ASEAN 8. Journal of Asian Behavioural Studies, 3(6), 55-63.
BREUSCH, T. S., & PAGAN, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239-253.
CHARFEDDINE, L., & MRABET, Z. (2017). The impact of economic development and social-political factors on ecological footprint: A panel data analysis for 15 MENA countries. Renewable and Sustainable Energy Reviews, 76, 138-154.
COWAN, W. N., CHANG, T., INGLESI-LOTZ, R., & Gupta, R. (2014). The nexus of electricity consumption, economic growth and CO2 emissions in the BRICS countries. Energy Policy, 66, 359-368.
CROES, R., RIDDERSTAAT, J., & VAN NIEKERK, M. (2018). Connecting quality of life, tourism specialization, and economic growth in small island destinations: The case of Malta. Tourism Management, 65, 212-223.
DOLNICAR, S., LAZAREVSKI, K., & YANAMANDRAM, V. (2013). Quality of life and tourism: A conceptual framework and novel segmentation base. Journal of Business Research, 66(6), 724-729.
EASTERLIN, R. A., & ANGELESCU, L. (2012). Modern economic growth and quality of life: Cross-sectional and time series evidence. In Handbook of social indicators and quality of life research (pp. 113-136). Springer, Dordrecht.
EBERHARDT, M. & BOND S. (2009), Cross-section Dependence in Nonstationary Panel Models: A Novel Estimator, MPRA (Munich Personal RePEc Archive), Paper No: 17692. https://mpra.ub.uni-muenchen.de/17692/1/MPRA_paper_17692.pdf (08.11.2018)
EMIRMAHMUTOGLU, F., & KOSE, N. (2011). Testing for Granger causality in heterogeneous mixed panels. Economic Modelling, 28(3), 870-876.
FISHER, R.A., 1932. Statistical Methods for Research Workers, 4th edition. Oliver and Boyd, Edinburgh.
FUJII, H., IWATA, K., CHAPMAN, A., KAGAWA, S., & MANAGI, S. (2018). An analysis of urban environmental Kuznets curve of CO2 emissions: Empirical analysis of 276 global metropolitan areas. Applied energy, 228, 1561-1568.
GÖVDELİ, T. Ekonomik Özgürlük, Turizm Ve Ekonomik Büyüme: BRICST Ülkelerinde KÓNYA Bootstrap Nedensellik Analizi. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 379-390.
GRANGER, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 424-438.
GULOGLU, B., & BAYAR, G. (2016). Sectoral exports dynamics of Turkey: Evidence from panel data estimators. The Journal of International Trade & Economic Development, 25(7), 959-977.
JAUNKY, V. C. (2011). The CO2 emissions-income nexus: evidence from rich countries. Energy Policy, 39(3), 1228-1240.
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(2), 169-210.
KAIS, S., & BEN MBAREK, M. (2017). Dynamic relationship between CO2 emissions, energy consumption and economic growth in three North African countries. International Journal of Sustainable Energy, 36(9), 840-854.
KIM, H., WOO, E., & UYSAL, M. (2015). Tourism experience and quality of life among elderly tourists. Tourism management, 46, 465-476.
KOHLER, M. (2013). CO2 emissions, energy consumption, income and foreign trade: A South African perspective. Energy Policy, 63, 1042-1050.
KRUGER, C. J. (2015). Applying the city development index (CDI) to measure the quality of life of the local municipalities in the northern Cape between 2001 and 2011 (Doctoral dissertation, Stellenbosch: Stellenbosch University).
LARSSON, R., LYHAGEN, J., & LÖTHGREN, M. (2001). Likelihood‐based cointegration tests in heterogeneous panels. The Econometrics Journal, 4(1), 109-142.
LIM, K. M., LIM, S. Y., & YOO, S. H. (2014). Oil consumption, CO2 emission, and economic growth: Evidence from the Philippines. Sustainability, 6(2), 967-979.
LOTFALIPOUR, M. R., FALAHI, M. A., & ASHENA, M. (2010). Economic growth, CO2 emissions, and fossil fuels consumption in Iran. Energy, 35(12), 5115-5120.
MENG, X., & HAN, J. (2018). Roads, economy, population density, and CO2: A city-scaled causality analysis. Resources, Conservation and Recycling, 128, 508-515.
OMRI, A. (2013). CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models. Energy economics, 40, 657-664.
PANAYOTOU, T. (1993). Empirical tests and policy analysis of environmental degradation at different stages of economic development (No. 992927783402676). International Labour Organization.
PAO, H. T., & TSAI, C. M. (2010). CO2 emissions, energy consumption and economic growth in BRIC countries. Energy policy, 38(12), 7850-7860.
PESARAN, M. H. (2004). General diagnostic tests for cross section dependence in panels. Cambridge Working Papers in Economics no. 435. University of Cambridge
PESARAN, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of applied econometrics, 22(2), 265-312.
PESARAN, M. H., & YAMAGATA, T. (2008). Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), 50-93.
PESARAN, M. H., Ullah, A., & Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The Econometrics Journal, 11(1), 105-127.
RAFINDADI, A. A. (2016). Does the need for economic growth influence energy consumption and CO2 emissions in Nigeria? Evidence from the innovation accounting test. Renewable and Sustainable Energy Reviews, 62, 1209-1225.
RAFIQ, S., SALIM, R., & NIELSEN, I. (2016). Urbanization, openness, emissions, and energy intensity: a study of increasingly urbanized emerging economies. Energy Economics, 56, 20-28.
RITI, J. S., SONG, D., SHU, Y., & KAMAH, M. (2017). Decoupling CO2 emission and economic growth in China: Is there consistency in estimation results in analyzing environmental Kuznets curve?. Journal of Cleaner Production, 166, 1448-1461.
SWAMY, P. A. (1970). Efficient inference in a random coefficient regression model. Econometrica: Journal of the Econometric Society, 311-323.
TANGUAY, G. A., RAJAONSON, J., LEFEBVRE, J. F., & LANOIE, P. (2010). Measuring the sustainability of cities: An analysis of the use of local indicators. Ecological Indicators, 10(2), 407-418.
TODA, H. Y., & YAMAMOTO, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of econometrics, 66(1-2), 225-250.WESTERLUND, J., & EDGERTON, D. L. (2007). A panel bootstrap cointegration test. Economics Letters, 97(3), 185-190.

CO2, QUALITY OF LIFE AND ECONOMIC GROWTH IN MENA COUNTRIES

Year 2019, Volume: 20 Issue: 1, 281 - 292, 31.05.2019

Tuncer Gövdeli

Abstract

Bu çalışmanın
amacı 12 MENA ülkesini yaşam kalitesi (quality of life), CO₂
emisyonu ve ekonomik büyüme arasındaki ilişkiyi 1970 ile 2014 dönemi boyunca
incelemektir. Ampirik sonuçlar göstermektedir ki CO₂ emisyonundan
ekonomik büyümeye doğru tek yönlü nedensellik vardır. Bununla birlikte ekonomik
büyümeden yaşam kalitesine doğru tek yönlü nedensellik ilişkisi tespit
edilmiştir. Ayrıca CO₂ emisyonu ile yaşam kalitesi arasında çift
yönlü nedensellik vardır. Çalışma, çevre politikalarının MENA ülkelerinde
sürdürülebilir ekonomik büyümeyi ve yaşam standartlarını artırabilmek için farklılıkları
tanıması gerektiğini göstermektedir.

Keywords

CO2 Emisyonu, Yaşam Kalitesi, Ekonomik Büyüme, MENA Ülkeleri

References

AHMAD, N., DU, L., LU, J., WANG, J., LI, H. Z., & Hashmi, M. Z. (2017). Modelling the CO2 emissions and economic growth in Croatia: Is there any environmental Kuznets curve?. Energy, 123, 164-172.
ALI, S., ANWAR, S., & NASREEN, S. (2017). Renewable and Non-Renewable Energy and its Impact on Environmental Quality in South Asian Countries. Forman Journal of Economic Studies, 13, 177-194.
ALKHATHLAN, K., & JAVID, M. (2013). Energy consumption, carbon emissions and economic growth in Saudi Arabia: An aggregate and disaggregate analysis. Energy Policy, 62, 1525-1532.
APERGIS, N., PAYNE, J. E., MENYAH, K., & Wolde-RUFAEL, Y. (2010). On the causal dynamics between emissions, nuclear energy, renewable energy, and economic growth. Ecological Economics, 69(11), 2255-2260.
ATASOY, B. S. (2017). Testing the environmental Kuznets curve hypothesis across the US: Evidence from panel mean group estimators. Renewable and Sustainable Energy Reviews, 77, 731-747.
AZAM, M. (2016). Does environmental degradation shackle economic growth? A panel data investigation on 11 Asian countries. Renewable and Sustainable Energy Reviews, 65, 175-182.
AZLINA, A. A., LAW, S. H., & MUSTAPHA, N. H. N. (2014). Dynamic linkages among transport energy consumption, income and CO2 emission in Malaysia. Energy Policy, 73, 598-606.
BORHAN, H., AHMED, E. M., & HITAM, M. (2018). Co2, Quality of Life and Economic Growth in ASEAN 8. Journal of Asian Behavioural Studies, 3(6), 55-63.
BREUSCH, T. S., & PAGAN, A. R. (1980). The Lagrange multiplier test and its applications to model specification in econometrics. The Review of Economic Studies, 47(1), 239-253.
CHARFEDDINE, L., & MRABET, Z. (2017). The impact of economic development and social-political factors on ecological footprint: A panel data analysis for 15 MENA countries. Renewable and Sustainable Energy Reviews, 76, 138-154.
COWAN, W. N., CHANG, T., INGLESI-LOTZ, R., & Gupta, R. (2014). The nexus of electricity consumption, economic growth and CO2 emissions in the BRICS countries. Energy Policy, 66, 359-368.
CROES, R., RIDDERSTAAT, J., & VAN NIEKERK, M. (2018). Connecting quality of life, tourism specialization, and economic growth in small island destinations: The case of Malta. Tourism Management, 65, 212-223.
DOLNICAR, S., LAZAREVSKI, K., & YANAMANDRAM, V. (2013). Quality of life and tourism: A conceptual framework and novel segmentation base. Journal of Business Research, 66(6), 724-729.
EASTERLIN, R. A., & ANGELESCU, L. (2012). Modern economic growth and quality of life: Cross-sectional and time series evidence. In Handbook of social indicators and quality of life research (pp. 113-136). Springer, Dordrecht.
EBERHARDT, M. & BOND S. (2009), Cross-section Dependence in Nonstationary Panel Models: A Novel Estimator, MPRA (Munich Personal RePEc Archive), Paper No: 17692. https://mpra.ub.uni-muenchen.de/17692/1/MPRA_paper_17692.pdf (08.11.2018)
EMIRMAHMUTOGLU, F., & KOSE, N. (2011). Testing for Granger causality in heterogeneous mixed panels. Economic Modelling, 28(3), 870-876.
FISHER, R.A., 1932. Statistical Methods for Research Workers, 4th edition. Oliver and Boyd, Edinburgh.
FUJII, H., IWATA, K., CHAPMAN, A., KAGAWA, S., & MANAGI, S. (2018). An analysis of urban environmental Kuznets curve of CO2 emissions: Empirical analysis of 276 global metropolitan areas. Applied energy, 228, 1561-1568.
GÖVDELİ, T. Ekonomik Özgürlük, Turizm Ve Ekonomik Büyüme: BRICST Ülkelerinde KÓNYA Bootstrap Nedensellik Analizi. Uluslararası İktisadi ve İdari İncelemeler Dergisi, 379-390.
GRANGER, C. W. (1969). Investigating causal relations by econometric models and cross-spectral methods. Econometrica: Journal of the Econometric Society, 424-438.
GULOGLU, B., & BAYAR, G. (2016). Sectoral exports dynamics of Turkey: Evidence from panel data estimators. The Journal of International Trade & Economic Development, 25(7), 959-977.
JAUNKY, V. C. (2011). The CO2 emissions-income nexus: evidence from rich countries. Energy Policy, 39(3), 1228-1240.
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(2), 169-210.
KAIS, S., & BEN MBAREK, M. (2017). Dynamic relationship between CO2 emissions, energy consumption and economic growth in three North African countries. International Journal of Sustainable Energy, 36(9), 840-854.
KIM, H., WOO, E., & UYSAL, M. (2015). Tourism experience and quality of life among elderly tourists. Tourism management, 46, 465-476.
KOHLER, M. (2013). CO2 emissions, energy consumption, income and foreign trade: A South African perspective. Energy Policy, 63, 1042-1050.
KRUGER, C. J. (2015). Applying the city development index (CDI) to measure the quality of life of the local municipalities in the northern Cape between 2001 and 2011 (Doctoral dissertation, Stellenbosch: Stellenbosch University).
LARSSON, R., LYHAGEN, J., & LÖTHGREN, M. (2001). Likelihood‐based cointegration tests in heterogeneous panels. The Econometrics Journal, 4(1), 109-142.
LIM, K. M., LIM, S. Y., & YOO, S. H. (2014). Oil consumption, CO2 emission, and economic growth: Evidence from the Philippines. Sustainability, 6(2), 967-979.
LOTFALIPOUR, M. R., FALAHI, M. A., & ASHENA, M. (2010). Economic growth, CO2 emissions, and fossil fuels consumption in Iran. Energy, 35(12), 5115-5120.
MENG, X., & HAN, J. (2018). Roads, economy, population density, and CO2: A city-scaled causality analysis. Resources, Conservation and Recycling, 128, 508-515.
OMRI, A. (2013). CO2 emissions, energy consumption and economic growth nexus in MENA countries: Evidence from simultaneous equations models. Energy economics, 40, 657-664.
PANAYOTOU, T. (1993). Empirical tests and policy analysis of environmental degradation at different stages of economic development (No. 992927783402676). International Labour Organization.
PAO, H. T., & TSAI, C. M. (2010). CO2 emissions, energy consumption and economic growth in BRIC countries. Energy policy, 38(12), 7850-7860.
PESARAN, M. H. (2004). General diagnostic tests for cross section dependence in panels. Cambridge Working Papers in Economics no. 435. University of Cambridge
PESARAN, M. H. (2007). A simple panel unit root test in the presence of cross‐section dependence. Journal of applied econometrics, 22(2), 265-312.
PESARAN, M. H., & YAMAGATA, T. (2008). Testing slope homogeneity in large panels. Journal of Econometrics, 142(1), 50-93.
PESARAN, M. H., Ullah, A., & Yamagata, T. (2008). A bias‐adjusted LM test of error cross‐section independence. The Econometrics Journal, 11(1), 105-127.
RAFINDADI, A. A. (2016). Does the need for economic growth influence energy consumption and CO2 emissions in Nigeria? Evidence from the innovation accounting test. Renewable and Sustainable Energy Reviews, 62, 1209-1225.
RAFIQ, S., SALIM, R., & NIELSEN, I. (2016). Urbanization, openness, emissions, and energy intensity: a study of increasingly urbanized emerging economies. Energy Economics, 56, 20-28.
RITI, J. S., SONG, D., SHU, Y., & KAMAH, M. (2017). Decoupling CO2 emission and economic growth in China: Is there consistency in estimation results in analyzing environmental Kuznets curve?. Journal of Cleaner Production, 166, 1448-1461.
SWAMY, P. A. (1970). Efficient inference in a random coefficient regression model. Econometrica: Journal of the Econometric Society, 311-323.
TANGUAY, G. A., RAJAONSON, J., LEFEBVRE, J. F., & LANOIE, P. (2010). Measuring the sustainability of cities: An analysis of the use of local indicators. Ecological Indicators, 10(2), 407-418.
TODA, H. Y., & YAMAMOTO, T. (1995). Statistical inference in vector autoregressions with possibly integrated processes. Journal of econometrics, 66(1-2), 225-250.WESTERLUND, J., & EDGERTON, D. L. (2007). A panel bootstrap cointegration test. Economics Letters, 97(3), 185-190.

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Details

Primary Language	English
Subjects	Business Administration
Journal Section	Makaleler
Authors	Tuncer Gövdeli 0000-0002-6600-8684
Publication Date	May 31, 2019
Submission Date	December 22, 2018
Published in Issue	Year 2019Volume: 20 Issue: 1

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APA	Gövdeli, T. (2019). CO2, quality of life and economic growth in mena countries. Cumhuriyet Üniversitesi İktisadi Ve İdari Bilimler Dergisi, 20(1), 281-292. https://doi.org/10.37880/cumuiibf.500829

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