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Environment degradation, economic growth and energy consumption nexus: A wavelet-windowed cross correlation approach

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  • Jammazi, Rania
  • Aloui, Chaker

Abstract

This paper analyzes the interactive linkages between carbon dioxide (CO2) emissions, energy consumption (EC) and economic growth (EG) using a novel approach namely wavelet windowed cross correlation (WWCC) for six oil-exporting countries from the GCC (Gulf Cooperation Council) region over the period 1980–2012. Our empirical results show that there exists a bidirectional causal relationship between EC and EG. However, the results support the occurrence of unidirectional causality from EC to CO2 emissions without any feedback effects, and there exists a bidirectional causal relationship between EG and CO2 emissions for the region as a whole. The study suggests that environmental and energy policies should recognize the differences in the nexus between EC and EG in order to maintain sustainable EG in the GCC region. Our findings will be useful for GCC countries to better evaluate its situation in the future climate negotiations. The overall findings will help GCC countries assess its position better in future climate change negotiations.

Suggested Citation

  • Jammazi, Rania & Aloui, Chaker, 2015. "Environment degradation, economic growth and energy consumption nexus: A wavelet-windowed cross correlation approach," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 436(C), pages 110-125.
    • Handle: RePEc:eee:phsmap:v:436:y:2015:i:c:p:110-125
    DOI: 10.1016/j.physa.2015.05.058
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    2. De Juan Fernández, Aránzazu & Poncela, Pilar & Rodríguez Caballero, Carlos Vladimir, 2022. "Economic activity and climate change," DES - Working Papers. Statistics and Econometrics. WS 35044, Universidad Carlos III de Madrid. Departamento de Estadística.
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    8. Sayed Saghaian & Hosein Mohammadi & Morteza Mohammadi, 2022. "The Effects of Agricultural Product Exports on Environmental Quality," Sustainability, MDPI, vol. 14(21), pages 1-11, October.
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    10. Erdost Torun & Afife Duygu Ayhan Akdeniz & Erhan Demireli & Simon Grima, 2022. "Long-Term US Economic Growth and the Carbon Dioxide Emissions Nexus: A Wavelet-Based Approach," Sustainability, MDPI, vol. 14(17), pages 1-16, August.
    11. Ebaidalla Mahjoub Ebaidalla & Sana Abusin, 2022. "The Effect of ICT on CO2 Emissions in the GCC Countries: Does Globalization Matter?," International Journal of Energy Economics and Policy, Econjournals, vol. 12(6), pages 56-66, November.
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    Keywords

    EG; EC; CO2 emissions; GCC countries; Lead–lag relationship; WWCC;
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