Long-run analysis of Environmental Kuznets Curve in the Middle East and North Africa

Abstract

The main originality of this paper is to empirically investigate the long-run relationship between carbone dioxide (CO2) emissions, energy use and real GDP per capita in the Middle East and North Africa (MENA) during the last three decades. Using panel cointegration tests (Westerlund, (2007) and DOLS estimation method, we validate the Environmental Kuznets Curve (EKC) hypothesis in the long run for the MENA region countries. Therefore, we conclude that oil producer countries have adopted several policy decisions in favor of CO2 emissions reduction. The estimated turning point of the EKC confirms our intuitions that only oil producer countries achieve CO2 emissions reduction goal.

Keywords

• Kuznets Curve
• MENA countries
• panel cointegration