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published 
DOI

http://dx.doi.org/10.25098/4.1.24

Issue 
Vol 4- Issue 1

JUNE 2020


Panel Data Evidence on the Relationship between Economic Growth, Electricity Consumption and CO2 Emissions in the GCC

Hatem Hatef Abdulkadhim Alyasari 1, Obaid Mahmmood Muhsin Alzawbaee2
1Accounting Department , faculty of Administration And Financial Sciences , Cihan University – Slemani , Slemani, Iraq

2Business Administration Department, faculty of Administration And Financial Sciences, Cihan University – Slemani, Slemani, Iraq

Received : 15-12-2019                                       Revised:23-2-2020

Accepted :  1-4-2020                                    Published :30-6-2020

Abstract:

This paper intended to examine the impact of CO2 and electricity consumption to growth the growth of Gulf Cooperation Council (GCC) economies. The period covered range from 1996 to 2013. This study formulates five panel data regression models. The empirical results indicate that capital accumulation and export are very important in terms of growth in the GCC economies. In addition, we found evidence that higher CO2 and import decreases economic growth. At the same time, we find that, although electricity consumption contributes positively to the growth of GDP, but it is statically insignificant. Empirical findings suggest that: As long as the gross capital formation plays a key role in economic growth, thus they must encourage an increase in gross capital formation. In addition, since CO2 contributes negatively to economic growth, policymakers should design and implement policies that enhance environmental friendly energy production and utilization.

Keywords: Economic growth, Electricity consumption, CO2 emissions, Panel data.

 

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