Study of the Relation among Economic Growth, Energy Using and Greenhouse Gas Emissions (Case study: Selected Countries of the OIC)

Subject Areas : Environmental Economics

Mohammadreza Nahidi Amirkhiz ¹ (Assistant professor, Department of Economics, Tabriz Branch, Islamic Azad University, Tabriz, Iran. *(Corresponding Author))
Farzad Rahimzadeh ² (Assistant Professor, Department of Economic, Accounting and Tourist Management, Faculty of Literature and Humanities, University of Guilan, Rasht, Iran.)
siamak shokouhifard ³ (‌PhD in Economics,‌Young Researchers and Elite Club, Ardabil Branch, Islamic Azad University, Ardabil, Iran.)

Received: 2017-02-17 Accepted : 2017-05-24 Published : 2020-05-21

Keywords: CO2 gas emission, Kuznets inverted U hypothesis, Panel data, Energy using, Economic growth,

Abstract :

Background and Objective: Energy carriers are one of the most important factors in production and accessing to energy resources can smooth countries economic growth and development process. Also, countries inclination in order to achieving higher economic growth has accompanied with higher using of energy carriers and has led to emission of Greenhouse gas. This leads to create environmental problems threatening human life. Therefore, studying the relation among economic growth, energy using and Greenhouse gas emissions is of particular importance. Method: Accordingly, the aim of this study is to analysis the interaction among economic growth, energy using and CO2 gas using data from 16 selected countries of the OIC. Findings: The results from estimated model with data panel technique showed that in significant level of 5%, existence the Kuznets inverted U hypothesis is valid in the under-studied countries. Since, the coefficient related to GDP growth variable and its square has positive and negative sign, respectively. Furthermore, the results showed that energy using has statistically positive impact on CO2 gas emission in time period 1995-2015. Discussion and Conclusion: Given the existence of a one-way causality relationship between GDP growth and CO2 emissions, the economic growth in the studied countries has led to an increase in CO2 emissions and as well as the U reverse relation of economic growth and CO2 emissions, so that in the studied countries, by increasing the growth rate, the amount of carbon dioxide emissions will increase as well. After a certain growth rate and passing through it, with higher economic growth CO2 emissions have also declined in these countries, It is recommended that, in view of the high importance of the environment, the environmental authorities and environmental organizations have adopted appropriate environmental laws and regulations, and technologies have progressed towards eco-friendly technologies and cost financing related to changing technology to environmentally friendly technology, as well as paying taxes which taxes to improve the environment.

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