Oil-Induced environmental Kuznets curve in organization of petroleum exporting countries (OPEC)


Saboori, Behnaz and Al-Mulali, Usama and Baba, Maizan and Mohammed, Abdul Hakim (2016) Oil-Induced environmental Kuznets curve in organization of petroleum exporting countries (OPEC). International Journal of Green Energy, 13 (4). pp. 408-416. ISSN 1543-5075

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This study investigates the Environmental Kuznets curve (EKC) hypothesis in 10 of the Organization of Petroleum Exporting Countries (OPEC). To realize the study’s aims a time series model is built based on the period 1977-2008, utilizing the ecological footprint as an Environmental indicator and income, labour, capital, oil consumption and oil price as economic indicators. Employing the Autoregressive Distributed Lag (ARDL) approach, by comparing the short and long-run income elasticities, the EKC hypothesis is present in six OPEC countries namely Algeria, Iraq, Venezuela, Nigeria, Qatar and Kuwait. Moreover, the Toda–Yamamoto–Dolado–Lütkepohl (TYDL) causality tests outcome show that, after oil consumption, the most significant factors in increasing ecological footprint are labour and capital. This implies the relocation of pollution intensive industries to almost all of the OPEC countries. However, oil prices reduce Environmental damage by its negative effect on the ecological footprint. From the outcome of this study it is important for the investigated countries to reduce their consumption of fossil fuel energy since it represents an important source of pollution. This can be achieved by allocating more labour and capital in projects and investments on renewable energy, energy efficiency and energy saving.

Item Type: Article
Uncontrolled Keywords: ARDL cointegration, ecological footprint, oil consumption, OPEC countries, TYDL causality tests
Subjects: H Social Sciences > HD Industries. Land use. Labor > HD28-70 Management. Industrial Management
Divisions: Faculty of Business (FOB)
Depositing User: Ms Rosnani Abd Wahab
Date Deposited: 20 Nov 2017 12:16
Last Modified: 20 Nov 2017 12:16
URII: http://shdl.mmu.edu.my/id/eprint/6496


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