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Investigating Dynamic Effect of Energy Consumption, Foreign Direct Investments and Economic Growth on CO2 Emissions between Oman and United Arab Emirates: Evidence from Co Integration and Causality Tests

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  • Shrikant Krupasindhu Panigrahi

    (University of Buraimi, College of Business, Oman)

  • Noor Azlinna Binti Azizan

    (Prince Sultan University, Saudi Arabia,)

  • Sumathi Kumaraswamy

    (University of Bahrain, Bahrain.)

Abstract

The main objective of this paper is to examine the dynamic impact of energy consumption, foreign direct investments, and economic growth on carbon emissions by employing dynamic estimation techniques of co-integration for Oman and the United Arab Emirates. This study used quarterly panel data of Oman and UAE over the period 1991-2018. Generalized method of moments (GMM), Granger causality test is applied to perform causal relationships among the constructs. The empirical econometric results revealed that there is a strong co-integration of the variables in the case of Oman but not for the United Arab Emirates. In other words, there is a strong positive effect of energy consumption and foreign direct investment on CO2 emission in Oman and the United Arab Emirates; whereas economic growth possesses a strong negative effect on CO2 emissions. The estimation did not support the EKC hypothesis and was found to be not applicable in Oman and UAE. Further discussions on the implications of the results are provided.

Suggested Citation

  • Shrikant Krupasindhu Panigrahi & Noor Azlinna Binti Azizan & Sumathi Kumaraswamy, 2020. "Investigating Dynamic Effect of Energy Consumption, Foreign Direct Investments and Economic Growth on CO2 Emissions between Oman and United Arab Emirates: Evidence from Co Integration and Causality Te," International Journal of Energy Economics and Policy, Econjournals, vol. 10(6), pages 288-298.
    • Handle: RePEc:eco:journ2:2020-06-38
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    More about this item

    Keywords

    energy consumption; foreign direct investment; economic growth CO2 emissions; Oman; UAE;
    All these keywords.

    JEL classification:

    • F43 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Economic Growth of Open Economies
    • F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
    • L94 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Electric Utilities

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