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A new look at carbon dioxide emissions in MENA countries

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  • Nidhaleddine Ben Cheikh

    (ESSCA School of Management)

  • Younes Ben Zaied

    (EDC Paris Business School)

Abstract

This paper revisits the dynamic relationship between carbon dioxide (CO2) emissions and income growth for the Middle East and North African (MENA) region. There has been a lively debate about the validity of the environmental Kuznets curve (EKC), which postulates the presence of an inverted U-shaped pattern for pollution levels as income increases. Our study proposes a new approach that models the emissions–income nexus without imposing any prior shape on the EKC. Accordingly, we suggest the implementation of a nonlinear panel threshold regression framework in which the change in the dynamics of environmental quality can be modeled endogenously from the data. The empirical results reveal the presence of a threshold effect in CO2 emissions, as the impact of income changes nonlinearly depending on different energy-related variables. We note the role of the energy fuel mix in mitigating emissions as MENA countries switch to low-carbon sources of energy and renewables.

Suggested Citation

  • Nidhaleddine Ben Cheikh & Younes Ben Zaied, 2021. "A new look at carbon dioxide emissions in MENA countries," Climatic Change, Springer, vol. 166(3), pages 1-22, June.
    • Handle: RePEc:spr:climat:v:166:y:2021:i:3:d:10.1007_s10584-021-03126-9
    DOI: 10.1007/s10584-021-03126-9
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    2. Licong Xing & Bisharat Hussain Chang & Salem Hamad Aldawsari, 2024. "Green Finance Mechanisms for Sustainable Development: Evidence from Panel Data," Sustainability, MDPI, vol. 16(22), pages 1-21, November.
    3. Ben Cheikh, Nidhaleddine & Rault, Christophe, 2024. "Financial inclusion and threshold effects in carbon emissions," Energy Policy, Elsevier, vol. 192(C).
    4. Taner Akan & Halil İbrahim Gündüz & Tara Vanlı & Ahmet Baran Zeren & Ali Haydar Işık & Tamerlan Mashadihasanli, 2023. "Why are some countries cleaner than others? New evidence from macroeconomic governance," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(7), pages 6167-6223, July.
    5. Hunjra, Ahmed Imran & Hassan, M. Kabir & Zaied, Younes Ben & Managi, Shunsuke, 2023. "Nexus between green finance, environmental degradation, and sustainable development: Evidence from developing countries," Resources Policy, Elsevier, vol. 81(C).
    6. Ben Cheikh, Nidhaleddine & Ben Zaied, Younes, 2024. "Does geopolitical uncertainty matter for the diffusion of clean energy?," Energy Economics, Elsevier, vol. 132(C).

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    More about this item

    Keywords

    CO2 emissions; Growth; Energy intensity; Panel threshold regression model;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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