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The Relationship among GDP, Carbon Dioxide Emissions, Energy Consumption, and Energy Production from Oil and Gas in Saudi Arabia

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  • Abdullah Algarini

    (College of Economics and Administrative Sciences, Al Imam Mohammad Ibn Saud Islamic University, Riyadh 7527, Saudi Arabia.)

Abstract

The purpose of this paper is to investigate the causal relationship among economic growth, carbon dioxide (CO2) emissions, energy consumption, and energy production from oil and gas during 1990-2017. By vector autoregressive models and Granger causality Wald tests, this study suggests that there is bidirectional relationship between: Economic growth and energy consumption, economic growth and CO2 emissions, and electricity production from gas and CO2 emissions. Moreover, there is a unidirectional causality runs from energy consumption and CO2 emission to growth of electricity production from gas, and from energy production from oil to growth of CO2 emissions. This result confirms that energy consumption is a critical input of production and plays as a complement to the important factors of labor, capital, and land in Saudi Arabia.

Suggested Citation

  • Abdullah Algarini, 2020. "The Relationship among GDP, Carbon Dioxide Emissions, Energy Consumption, and Energy Production from Oil and Gas in Saudi Arabia," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 280-285.
    • Handle: RePEc:eco:journ2:2020-01-39
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    References listed on IDEAS

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    2. Tanattrin Bunnag, 2021. "The Causal Relationship among CO2 Emission, Oil Consumption and Economic Growth in Thailand: ARDL Bound Testing Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 427-431.

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    More about this item

    Keywords

    Energy consumption; Energy production; Economic growth; Saudi Arabia.;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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