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Can economic and financial development curb CO2 emissions in Qatar?

Year 2024, Volume: 12 Issue: 1, 522 - 540, 26.01.2024
https://doi.org/10.29130/dubited.1168280

Abstract

This study investigates the impacts of economic and financial development on carbon emissions in Qatar between 1975 and 2018 by analyzing the results of the ARDL and VECM tests. We do so by considering two model specifications, Model 1 and 2, considering CO2 emission is a dependent variable. In Model 1, economic growth and its square are considered as independent variables to test the basic Environmental Kuznets Curve (EKC) hypothesis. The results provide evidence to confirm the EKC hypothesis for Qatar. In Model 2, various economic and financial variables are specified as regressors, and all the independent variables have a statistically significant impact on CO2 emissions at a 1% level. The coefficient of real income per capita implies that an increase in income will increase carbon emissions by 72%. On the other hand, financial development's carbon elasticity indicates that an increase in financial development will decrease CO2 emissions by 32%. The carbon elasticity of foreign trade signifies that an increase in trade will decrease CO2 emissions by 33%.

References

  • Al-mulla, A., Ari, I., & Koç, M. (2022). Sustainable financing for entrepreneurs : Case study in designing a crowdfunding platform tailored for Qatar. Digital Business, 2(2), 100032. https://doi.org/10.1016/j.digbus.2022.100032
  • Al-Saidi, M. (2020). Instruments of energy subsidy reforms in Arab countries — The case of the Gulf Cooperation Council (GCC) countries. Energy Reports, 6, 68–73. https://doi.org/10.1016/j.egyr.2019.08.020
  • Ari, I., & Koc, M. (2022). Economic and Financial Development Impacts on Energy Consumption and Air Quality in Qatar. Journal of Management and Economics Research, 20(1), 313–330. https://doi.org/http://dx.doi.org/10.11611/yead.1061317
  • Arouri, M. E. H., Ben Youssef, A., M’henni, H., & Rault, C. (2012). Energy consumption, economic growth and CO 2 emissions in Middle East and North African countries. Energy Policy, 45, 342–349. https://doi.org/10.1016/j.enpol.2012.02.042
  • Bayram, I. Ş., Alrawi, O., Al-Naimi, H., & Koç, M. (2017). Direct load control of air conditioners in Qatar: An empirical study. 2017 6th International Conference on Renewable Energy Research and Applications, ICRERA 2017, 2017-Janua, 1007–1012. https://doi.org/10.1109/ICRERA.2017.8191209
  • Bekhet, H. A., Matar, A., & Yasmin, T. (2017). CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: Dynamic simultaneous equation models. Renewable and Sustainable Energy Reviews, 70(2017), 117–132. https://doi.org/10.1016/j.rser.2016.11.089
  • Ben Cheikh, N., Ben Zaied, Y., & Chevallier, J. (2021). On the nonlinear relationship between energy use and CO2 emissions within an EKC framework: Evidence from panel smooth transition regression in the MENA region. Research in International Business and Finance, 55(May), 101331. https://doi.org/10.1016/j.ribaf.2020.101331
  • BP. (2020). Statistical Review of World Energy, 2020 | 69th Edition (Vol. 69). https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2020-full-report.pdf
  • Burnham, K. P., & Anderson, D. R. (2004). Multimodel Inference: Understanding AIC and BIC in Model Selection. Sociological Methods & Research, 33(2), 261–304. https://doi.org/10.1177/0049124104268644
  • Charfeddine, L. (2017). The impact of energy consumption and economic development on Ecological Footprint and CO2 emissions: Evidence from a Markov Switching Equilibrium Correction Model. Energy Economics, 65, 355–374. https://doi.org/10.1016/j.eneco.2017.05.009
  • Dickey, D. A., & Fuller, W. A. (1979). Distribution of the Estimators for Autoregressive Time Series With a Unit Root. Journal of the American Statistical Association, 74(366), 427. https://doi.org/10.2307/2286348
  • Dinda, S. (2004). Environmental Kuznets Curve hypothesis: A survey. Ecological Economics, 49(4), 431–455. https://doi.org/10.1016/j.ecolecon.2004.02.011
  • Engle, R. F., & Granger, C. W. J. (1987). Co-Integration and Error Correction : Representation , Estimation , and Testing. Econometrica, 55(2), 251–276.
  • Grossman, G., & Krueger, A. (1991). Environmental Impacts of a North American Free Trade Agreement. National Bureau of Economic Research, 3914. https://doi.org/10.3386/w3914
  • Grossman, G. M., & Krueger, A. B. (1995). Economic Growth and the Environment. The Quarterly Journal of Economics, 110(2), 353–377.
  • Gütschow, J., Jeffery, L., Gieseke, R., & Günther, A. (2019). The PRIMAP-hist national historical emissions time series (1850-2017). In GFZ Data Services. https://doi.org/10.5880/pik.2019.018 Hussein, H., & Lambert, L. A. (2020). A Rentier state under blockade: Qatar’s water-energy-food predicament from energy abundance and food insecurity to a silent water crisis. Water (Switzerland), 12(4). https://doi.org/10.3390/W12041051
  • Jammazi, R., & Aloui, C. (2015). On the interplay between energy consumption, economic growth and CO2 emission nexus in the GCC countries: A comparative analysis through wavelet approaches. Renewable and Sustainable Energy Reviews, 51, 1737–1751. https://doi.org/10.1016/j.rser.2015.07.073
  • Johansen, S. (1992). Testing weak exogeneity and the order of cointegration in UK money demand data. Journal of Policy Modeling, 14(3), 313–334. https://doi.org/10.1016/0161-8938(92)90003-U
  • Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration - with applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52(2), 169–210. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x
  • Jolo, A. M., Ari, I., & Koç, M. (2022). Driving Factors of Economic Diversification in Resource-Rich Countries via Panel Data Evidence. Sustainability, 14(5), 2797. https://doi.org/10.3390/su14052797
  • Kahia, M., Ben Aïssa, M. S., & Charfeddine, L. (2016). Impact of renewable and non-renewable energy consumption on economic growth: New evidence from the MENA Net Oil Exporting Countries (NOECs). Energy, 116, 102–115. https://doi.org/10.1016/j.energy.2016.07.126
  • Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1), 1–28.
  • MDPS. (2020). Qatar Economic Outlook. Ministry of Development Planning and Statistics, August, 1–50. http://www.mdps.gov.qa/en/knowledge/Doc/QEO/Qatar_Economic_Outlook_2016_2018_EN.pdf
  • Meza, A., Ari, I., Al-sada, M. S., & Koç, M. (2021). Future LNG competition and trade using an agent-based predictive model. Energy Strategy Reviews, 38(August), 100734. https://doi.org/10.1016/j.esr.2021.100734
  • Mohamed, B. H., Ari, I., Al-sada, M. S., & Koç, M. (2021). Strategizing Human Development for a Country in Transition from a Resource-Based to a Knowledge-Based Economy. Sustainability, 13(13750).
  • Mrabet, Z., & Alsamara, M. (2017). Testing the Kuznets Curve hypothesis for Qatar: A comparison between carbon dioxide and ecological footprint. Renewable and Sustainable Energy Reviews, 70(December 2015), 1366–1375. https://doi.org/10.1016/j.rser.2016.12.039
  • Mrabet, Z., AlSamara, M., & Hezam Jarallah, S. (2017). The impact of economic development on environmental degradation in Qatar. Environmental and Ecological Statistics, 24(1), 7–38. https://doi.org/10.1007/s10651-016-0359-6
  • Narayan, P. K. (2005). The saving and investment nexus for China: Evidence from cointegration tests. Applied Economics, 37(17), 1979–1990. https://doi.org/10.1080/00036840500278103
  • Omri, A., Daly, S., Rault, C., & Chaibi, A. (2015). Financial development, environmental quality, trade and economic growth: What causes what in MENA countries. Energy Economics, 48, 242–252. https://doi.org/10.1016/j.eneco.2015.01.008
  • Panayotou, T. (1993). Empirical tests and policy analysis of environmental degradation at different stages of economic development. In Pacific and Asian Journal of Energy (Vol. 4, Issue WP. 238).
  • Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616
  • Phillips, P. C. B., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335–346. https://doi.org/10.1093/biomet/75.2.335
  • Ramsey, J. B. (1969). Tests for Specification Errors in Classical Linear Least-Squares Regression Analysis. Journal of the Royal Statistical Society. Series B (Methodological), 31(2), 350–371.
  • Sarkodie, S. A., & Strezov, V. (2019). A review on Environmental Kuznets Curve hypothesis using bibliometric and meta-analysis. Science of the Total Environment, 649, 128–145. https://doi.org/10.1016/j.scitotenv.2018.08.276
  • Stern, D. I. (2004). The Rise and Fall of the Environmental Kuznets Curve. World Development, 32(8), 1419–1439. https://doi.org/10.1016/j.worlddev.2004.03.004
  • The World Bank. (2020a). World Development Indicators. GDP per capita PPP (current international $). [Data]. https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?most_recent_value_desc=true&sort=desc&start=1990&view=chart
  • The World Bank. (2020b). World Development Indicators. [Data]. https://databank.worldbank.org/source/world-development-indicators
  • Total. (2020). Al-Kharsaah Solar PV IPP Project.
  • WRI. (2021). Historical GHG Emissions: CAIT Data Source. Available Online at: Https://Www.Climatewatchdata.Org.

Ekonomik ve finansal gelişme Katar'daki CO2 emisyonlarını azaltabilir mi?

Year 2024, Volume: 12 Issue: 1, 522 - 540, 26.01.2024
https://doi.org/10.29130/dubited.1168280

Abstract

Bu çalışma, ARDL ve VECM testlerinin sonuçlarını analiz ederek Katar'da 1975 ve 2018 yılları arasında ekonomik ve finansal gelişmenin karbon emisyonları üzerindeki etkilerini araştırmaktadır. Bunu, CO2 emisyonunun bağımlı bir değişken olduğunu göz önünde bulundurarak, Model 1 ve 2 olmak üzere iki model spesifikasyonunu dikkate alarak yapıyoruz. Model 1'de, temel Çevresel Kuznets Eğrisi (EKC) hipotezini test etmek için ekonomik büyüme ve karesi bağımsız değişkenler olarak ele alınmıştır. Sonuçlar, Katar için EKC hipotezini doğrulamaktadır. Model 2'de çeşitli ekonomik ve finansal değişkenler regresör olarak belirtilir ve tüm bağımsız değişkenler CO2 emisyonları üzerinde %1 düzeyinde istatistiksel olarak anlamlı bir etkiye sahiptir. Kişi başına reel gelir katsayısı, gelirdeki artışın karbon emisyonlarını %72 oranında artıracağını ima eder. Öte yandan, finansal gelişmenin karbon esnekliği, finansal gelişmedeki artışın CO2 emisyonlarını %32 oranında azaltacağını göstermektedir. Dış ticaretin karbon esnekliği, ticaretteki artışın CO2 emisyonlarını %33 oranında azaltacağını ifade etmektedir.

References

  • Al-mulla, A., Ari, I., & Koç, M. (2022). Sustainable financing for entrepreneurs : Case study in designing a crowdfunding platform tailored for Qatar. Digital Business, 2(2), 100032. https://doi.org/10.1016/j.digbus.2022.100032
  • Al-Saidi, M. (2020). Instruments of energy subsidy reforms in Arab countries — The case of the Gulf Cooperation Council (GCC) countries. Energy Reports, 6, 68–73. https://doi.org/10.1016/j.egyr.2019.08.020
  • Ari, I., & Koc, M. (2022). Economic and Financial Development Impacts on Energy Consumption and Air Quality in Qatar. Journal of Management and Economics Research, 20(1), 313–330. https://doi.org/http://dx.doi.org/10.11611/yead.1061317
  • Arouri, M. E. H., Ben Youssef, A., M’henni, H., & Rault, C. (2012). Energy consumption, economic growth and CO 2 emissions in Middle East and North African countries. Energy Policy, 45, 342–349. https://doi.org/10.1016/j.enpol.2012.02.042
  • Bayram, I. Ş., Alrawi, O., Al-Naimi, H., & Koç, M. (2017). Direct load control of air conditioners in Qatar: An empirical study. 2017 6th International Conference on Renewable Energy Research and Applications, ICRERA 2017, 2017-Janua, 1007–1012. https://doi.org/10.1109/ICRERA.2017.8191209
  • Bekhet, H. A., Matar, A., & Yasmin, T. (2017). CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: Dynamic simultaneous equation models. Renewable and Sustainable Energy Reviews, 70(2017), 117–132. https://doi.org/10.1016/j.rser.2016.11.089
  • Ben Cheikh, N., Ben Zaied, Y., & Chevallier, J. (2021). On the nonlinear relationship between energy use and CO2 emissions within an EKC framework: Evidence from panel smooth transition regression in the MENA region. Research in International Business and Finance, 55(May), 101331. https://doi.org/10.1016/j.ribaf.2020.101331
  • BP. (2020). Statistical Review of World Energy, 2020 | 69th Edition (Vol. 69). https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/pdfs/energy-economics/statistical-review/bp-stats-review-2020-full-report.pdf
  • Burnham, K. P., & Anderson, D. R. (2004). Multimodel Inference: Understanding AIC and BIC in Model Selection. Sociological Methods & Research, 33(2), 261–304. https://doi.org/10.1177/0049124104268644
  • Charfeddine, L. (2017). The impact of energy consumption and economic development on Ecological Footprint and CO2 emissions: Evidence from a Markov Switching Equilibrium Correction Model. Energy Economics, 65, 355–374. https://doi.org/10.1016/j.eneco.2017.05.009
  • Dickey, D. A., & Fuller, W. A. (1979). Distribution of the Estimators for Autoregressive Time Series With a Unit Root. Journal of the American Statistical Association, 74(366), 427. https://doi.org/10.2307/2286348
  • Dinda, S. (2004). Environmental Kuznets Curve hypothesis: A survey. Ecological Economics, 49(4), 431–455. https://doi.org/10.1016/j.ecolecon.2004.02.011
  • Engle, R. F., & Granger, C. W. J. (1987). Co-Integration and Error Correction : Representation , Estimation , and Testing. Econometrica, 55(2), 251–276.
  • Grossman, G., & Krueger, A. (1991). Environmental Impacts of a North American Free Trade Agreement. National Bureau of Economic Research, 3914. https://doi.org/10.3386/w3914
  • Grossman, G. M., & Krueger, A. B. (1995). Economic Growth and the Environment. The Quarterly Journal of Economics, 110(2), 353–377.
  • Gütschow, J., Jeffery, L., Gieseke, R., & Günther, A. (2019). The PRIMAP-hist national historical emissions time series (1850-2017). In GFZ Data Services. https://doi.org/10.5880/pik.2019.018 Hussein, H., & Lambert, L. A. (2020). A Rentier state under blockade: Qatar’s water-energy-food predicament from energy abundance and food insecurity to a silent water crisis. Water (Switzerland), 12(4). https://doi.org/10.3390/W12041051
  • Jammazi, R., & Aloui, C. (2015). On the interplay between energy consumption, economic growth and CO2 emission nexus in the GCC countries: A comparative analysis through wavelet approaches. Renewable and Sustainable Energy Reviews, 51, 1737–1751. https://doi.org/10.1016/j.rser.2015.07.073
  • Johansen, S. (1992). Testing weak exogeneity and the order of cointegration in UK money demand data. Journal of Policy Modeling, 14(3), 313–334. https://doi.org/10.1016/0161-8938(92)90003-U
  • Johansen, S., & Juselius, K. (1990). Maximum likelihood estimation and inference on cointegration - with applications to the demand for money. Oxford Bulletin of Economics and Statistics, 52(2), 169–210. https://doi.org/10.1111/j.1468-0084.1990.mp52002003.x
  • Jolo, A. M., Ari, I., & Koç, M. (2022). Driving Factors of Economic Diversification in Resource-Rich Countries via Panel Data Evidence. Sustainability, 14(5), 2797. https://doi.org/10.3390/su14052797
  • Kahia, M., Ben Aïssa, M. S., & Charfeddine, L. (2016). Impact of renewable and non-renewable energy consumption on economic growth: New evidence from the MENA Net Oil Exporting Countries (NOECs). Energy, 116, 102–115. https://doi.org/10.1016/j.energy.2016.07.126
  • Kuznets, S. (1955). Economic Growth and Income Inequality. The American Economic Review, 45(1), 1–28.
  • MDPS. (2020). Qatar Economic Outlook. Ministry of Development Planning and Statistics, August, 1–50. http://www.mdps.gov.qa/en/knowledge/Doc/QEO/Qatar_Economic_Outlook_2016_2018_EN.pdf
  • Meza, A., Ari, I., Al-sada, M. S., & Koç, M. (2021). Future LNG competition and trade using an agent-based predictive model. Energy Strategy Reviews, 38(August), 100734. https://doi.org/10.1016/j.esr.2021.100734
  • Mohamed, B. H., Ari, I., Al-sada, M. S., & Koç, M. (2021). Strategizing Human Development for a Country in Transition from a Resource-Based to a Knowledge-Based Economy. Sustainability, 13(13750).
  • Mrabet, Z., & Alsamara, M. (2017). Testing the Kuznets Curve hypothesis for Qatar: A comparison between carbon dioxide and ecological footprint. Renewable and Sustainable Energy Reviews, 70(December 2015), 1366–1375. https://doi.org/10.1016/j.rser.2016.12.039
  • Mrabet, Z., AlSamara, M., & Hezam Jarallah, S. (2017). The impact of economic development on environmental degradation in Qatar. Environmental and Ecological Statistics, 24(1), 7–38. https://doi.org/10.1007/s10651-016-0359-6
  • Narayan, P. K. (2005). The saving and investment nexus for China: Evidence from cointegration tests. Applied Economics, 37(17), 1979–1990. https://doi.org/10.1080/00036840500278103
  • Omri, A., Daly, S., Rault, C., & Chaibi, A. (2015). Financial development, environmental quality, trade and economic growth: What causes what in MENA countries. Energy Economics, 48, 242–252. https://doi.org/10.1016/j.eneco.2015.01.008
  • Panayotou, T. (1993). Empirical tests and policy analysis of environmental degradation at different stages of economic development. In Pacific and Asian Journal of Energy (Vol. 4, Issue WP. 238).
  • Pesaran, M. H., Shin, Y., & Smith, R. J. (2001). Bounds testing approaches to the analysis of level relationships. Journal of Applied Econometrics, 16(3), 289–326. https://doi.org/10.1002/jae.616
  • Phillips, P. C. B., & Perron, P. (1988). Testing for a unit root in time series regression. Biometrika, 75(2), 335–346. https://doi.org/10.1093/biomet/75.2.335
  • Ramsey, J. B. (1969). Tests for Specification Errors in Classical Linear Least-Squares Regression Analysis. Journal of the Royal Statistical Society. Series B (Methodological), 31(2), 350–371.
  • Sarkodie, S. A., & Strezov, V. (2019). A review on Environmental Kuznets Curve hypothesis using bibliometric and meta-analysis. Science of the Total Environment, 649, 128–145. https://doi.org/10.1016/j.scitotenv.2018.08.276
  • Stern, D. I. (2004). The Rise and Fall of the Environmental Kuznets Curve. World Development, 32(8), 1419–1439. https://doi.org/10.1016/j.worlddev.2004.03.004
  • The World Bank. (2020a). World Development Indicators. GDP per capita PPP (current international $). [Data]. https://data.worldbank.org/indicator/NY.GDP.PCAP.PP.CD?most_recent_value_desc=true&sort=desc&start=1990&view=chart
  • The World Bank. (2020b). World Development Indicators. [Data]. https://databank.worldbank.org/source/world-development-indicators
  • Total. (2020). Al-Kharsaah Solar PV IPP Project.
  • WRI. (2021). Historical GHG Emissions: CAIT Data Source. Available Online at: Https://Www.Climatewatchdata.Org.
There are 39 citations in total.

Details

Primary Language English
Subjects Engineering
Journal Section Articles
Authors

Ibrahim Arı 0000-0002-0780-0479

Publication Date January 26, 2024
Published in Issue Year 2024 Volume: 12 Issue: 1

Cite

APA Arı, I. (2024). Can economic and financial development curb CO2 emissions in Qatar?. Düzce Üniversitesi Bilim Ve Teknoloji Dergisi, 12(1), 522-540. https://doi.org/10.29130/dubited.1168280
AMA Arı I. Can economic and financial development curb CO2 emissions in Qatar?. DUBİTED. January 2024;12(1):522-540. doi:10.29130/dubited.1168280
Chicago Arı, Ibrahim. “Can Economic and Financial Development Curb CO2 Emissions in Qatar?”. Düzce Üniversitesi Bilim Ve Teknoloji Dergisi 12, no. 1 (January 2024): 522-40. https://doi.org/10.29130/dubited.1168280.
EndNote Arı I (January 1, 2024) Can economic and financial development curb CO2 emissions in Qatar?. Düzce Üniversitesi Bilim ve Teknoloji Dergisi 12 1 522–540.
IEEE I. Arı, “Can economic and financial development curb CO2 emissions in Qatar?”, DUBİTED, vol. 12, no. 1, pp. 522–540, 2024, doi: 10.29130/dubited.1168280.
ISNAD Arı, Ibrahim. “Can Economic and Financial Development Curb CO2 Emissions in Qatar?”. Düzce Üniversitesi Bilim ve Teknoloji Dergisi 12/1 (January 2024), 522-540. https://doi.org/10.29130/dubited.1168280.
JAMA Arı I. Can economic and financial development curb CO2 emissions in Qatar?. DUBİTED. 2024;12:522–540.
MLA Arı, Ibrahim. “Can Economic and Financial Development Curb CO2 Emissions in Qatar?”. Düzce Üniversitesi Bilim Ve Teknoloji Dergisi, vol. 12, no. 1, 2024, pp. 522-40, doi:10.29130/dubited.1168280.
Vancouver Arı I. Can economic and financial development curb CO2 emissions in Qatar?. DUBİTED. 2024;12(1):522-40.