Carbon emissions-income relationships with structural breaks: the case of the Middle Eastern and North African countries

Ghassen El Montasser; Ahdi Noomen Ajmi; Duc Khuong Nguyen

doi:10.1007/s11356-017-0725-4

Carbon emissions-income relationships with structural breaks: the case of the Middle Eastern and North African countries

Environ Sci Pollut Res Int. 2018 Jan;25(3):2869-2878. doi: 10.1007/s11356-017-0725-4. Epub 2017 Nov 15.

Authors

Ghassen El Montasser¹, Ahdi Noomen Ajmi², Duc Khuong Nguyen³

Affiliations

¹ ESC de Tunis, Université de la Manouba, Manouba, Tunisia. g.elmontasser@gmail.com.
² College of Science and Humanities in Slayel, Salman Bin Abdulaziz University, Al Kharj, Kingdom of Saudi Arabia.
³ IPAG Business School, University of Paris 1 Panthéon-Sorbonne, 184 Bld Saint-Germain, 75006, Paris, France.

PMID: 29143264
DOI: 10.1007/s11356-017-0725-4

Abstract

This article revisits the carbon dioxide (CO₂) emissions-GDP causal relationships in the Middle Eastern and North African (MENA) countries by employing the Rossi (Economet Theor 21:962-990, 2005) instability-robust causality test. We show evidence of significant causality relationships for all considered countries within the instability context, whereas the standard Granger causality test fails to detect causal links in any direction, except for Egypt, Iran, and Morocco. An important policy implication resulting from this robust analysis is that the income is not affected by the cuts in the CO₂ emissions for only two MENA countries, the UAE and Syria.

Keywords: CO2 emissions; Income; Robust causality.

MeSH terms

Africa, Northern
Carbon Dioxide / analysis*
Climate Change
Economic Development*
Environmental Monitoring / methods*
Income*
Middle East
Models, Theoretical*

Substances

Carbon Dioxide