Abstract:

In this study, 8 selected MENA countries with an average income level; Algeria, Egypt, Iran, Iraq, Jordan, Lebanon, Tunisia and Turkey are trying to determine the impact of economic growth and energy consumption on CO2 emissions. The 1988-2014 period was analyzed using the panel data analysis method, taking into account the horizontal cutting dependency using annual data. The stagnation of the series was studied by Hadri-Kurozumi (2012) from the second-generation unit root tests taking into account the horizontal cutting dependency and common factors, the presence of the matching relationship was used by the Westerlung-Edgerton (2007) LM bootstrap test, the AMG (Augmented Medium Group Predictor, Augmented Mean Group estimator) method to predict long-term ratings after the matching analysis. The causality relationship was also studied by the Dumitrescu-Hurlin (2012) test. The study finds a long-term relationship between economic growth, energy consumption and CO2 emissions. The country’s energy consumption increased by 1 per cent, increasing its CO2 emissions by 0.56 per cent. After the effects of energy consumption, considering the effects of economic growth, the 1 unit increase in economic growth reduces CO2 emissions by -0.90 units. The result is that energy consumption increases its CO2 emissions, while economic growth reduces its CO2 emissions. There is a two-way reason for the consumption of energy from improved energy to economic growth and from economic growth to energy consumption. There has been a two-way cause from CO2 to economic growth and from economic growth to CO2 emissions. There is a one-way causal relationship between the energy consumption and CO2 emissions.