Investigating the impact of GDP, energy mix, energy intensity, and the service sector on environmental pollution in MENA countries: An application of Driscoll-Kraay standard error approach

Abstract

The goal of this study is to explore the stochastic impacts of population, GDP, renewable energy, fossil fuels, energy intensity, and the service sector on environmental pollution through regression analysis. To achieve this goal, this study employed the Driscoll-Kraay standard error approach for the “Middle East and North African (MENA)” countries. The study assured a balanced panel of data from 1997 to 2021 and applied the STIRPAT model to test which variables are responsible for environmental pollution in the MENA region. The study's findings show that factors such as population size, gross domestic product, the use of fossil fuels, and energy intensity all contribute to environmental pollution. On the other hand, using renewable energy and strengthening the service sector can reduce long-term environmental pollution. The study's findings have proposed various policy implications for MENA countries to reduce environmental pollution, including carbon and greenhouse gas (GHG) emission mitigation, considering sustainable development goals 7 and 13.

Keywords

• Driscoll-kraay panel regression
• CO2 emissions
• Environmental pollution
• Energy mix
• Gross domestic product
• Renewable energy