CO2 emission, oil consumption and production, economic growth in MENAP countries: ARDL and ANOVA methods

Abstract

This paper examines the relationship between oil consumption, oil production, CO2 consumption and economic growth in MENAP countries, using the autoregressive distributed lag (ARDL) bounds testing approach, Toda and Yamamotos' non-causality and ANOVA methods. According to our results, oil consumption has a positive impact on economic growth in Qatar and Saudi Arabia both in the short-run and the long-run, but only in the long-run in Lebanon and Tunisia. Toda and Yamamoto causality results show evidence of a unidirectional causality relationship from GDP to CO2 emissions for Bahrain, Egypt, Morocco, Oman, Syria and Tunisia; a unidirectional causality relationship from CO2 emissions to GDP for Pakistan and Yemen; and a bi-directional causality relationship for Jordan, Kuwait, Lebanon and Qatar. The evidence of bi-directional causality between GDP and oil production was obtained for Algeria, Bahrain, Iran, Egypt, Kuwait, Libya, Oman, Qatar, Saudi Arabia, UAE, Oman and Syria.