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The environmental Kuznets curve relationship: a case study of the Gulf Cooperation Council region

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Abstract

By using panel data over the 1980–2017 period and two alternative indicators of environmental pollution (carbon dioxide (CO2) and sulfur dioxide (SO2) emissions), this paper investigates the validity of the environmental Kuznets curve (EKC) hypothesis in the Gulf Cooperation Council (GCC) region. Using three alternative econometric estimation techniques, we find strong evidence of a long-run inverted U-shaped relationship between real GDP per capita and both environmental indicators in the GCC region. Country-level short-run analysis indicates that the EKC hypothesis holds for Bahrain, Kuwait, Qatar, Saudi Arabia, and the United Arab Emirates (UAE) when CO2 emissions are used as a measure of environmental pollution. However, when SO2 emissions are used as a measure of environmental pollution, the EKC hypothesis holds for Oman, Qatar, Saudi Arabia, and the UAE. The results of a recently developed panel causality test reveal one-way causality from real GDP per capita to CO2 emissions and from real GDP per capita to SO2 emissions.

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Notes

  1. GCC countries include Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the United Arab Emirates (UAE).

  2. For example, see Tutulmaz (2015), Al-Mulali et al. (2015), Apergis and Ozturk (2015), and Fodha and Zaghdoud (2010).

  3. The literature on the EKC relationship can also be distinguished on the basis of the type of data used. Some studies consider country groups via panel data and others use time series data to consider individual countries, following varying methodologies.

  4. The US Energy Information Administration database can be accessed at https://www.eia.gov/ (accessed 20 August 2018).

  5. Detailed results are available from the authors upon request.

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Acknowledgements

This paper has greatly benefitted from very helpful comments and suggestions received from two anonymous reviewers. However, the authors are responsible for all remaining errors and omissions.

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Authors and Affiliations

  1. Department of Finance and Economics, College of Business and Economics, Qatar University, Doha, Qatar

    Mouyad Alsamara, Zouhair Mrabet & Ali Salman Saleh

  2. USC Business School, University of the Sunshine Coast, Sippy Downs, QLD, 4556, Australia

    Sajid Anwar

  3. Australia & School of International Tarde and Economics, Shanghai Lixin University of Accounting and Finance, Shanghai, China

    Sajid Anwar

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  1. Mouyad Alsamara
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  2. Zouhair Mrabet
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  3. Ali Salman Saleh
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  4. Sajid Anwar
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Correspondence to Zouhair Mrabet.

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Alsamara, M., Mrabet, Z., Saleh, A.S. et al. The environmental Kuznets curve relationship: a case study of the Gulf Cooperation Council region. Environ Sci Pollut Res 25, 33183–33195 (2018). https://doi.org/10.1007/s11356-018-3161-1

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