Abstract
Oman has traditionally relied upon natural gas and oil for meeting its domestic energy demand. As a result, despite growing economically, the level of carbon dioxide emissions in Oman has persistently surged; consequently, the nation has failed to ensure environmentally sustainable economic growth. Against this background, this current study aims to explore the impacts of energy consumption, energy efficiency, and financial development on Oman’s prospects of attaining environmentally sustainable growth over the 1972–2019 period. The estimation strategy is designed to take into account the structural break issues in the data. Using the carbon productivity level as an indicator of environmentally sustainable economic growth, we find long-run associations amid the study variables. Besides, higher energy consumption and greater financial development are found to impede carbon productivity while improving energy efficiency is observed to boost carbon productivity in Oman. Therefore, it is pertinent for Oman to consume low-carbon and energy-efficient fossil fuels, improve energy efficiency levels, and green its financial sector to achieve environmentally sustainable growth.
Similar content being viewed by others
Data availability
The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.
Notes
BRICS abbreviates for Brazil, Russia, India, China, and South Africa.
The missing data points are filled using the linear interpolation technique.
In both models 1 and 2, we have included the structural break year dummy variable for the year 1983 as identified from the BH cointegration analysis.
References
Abbasi KR, Hussain K, Haddad AM, Salman A, Ozturk I (2022) The role of financial development and technological innovation towards sustainable development in Pakistan: fresh insights from consumption and territory-based emissions. Technol Forecast Social Change 176:121444
Abdul-Wahab SA, Charabi Y, Al-Maamari R, Al-Rawas GA, Gastli A, Chan K (2015) CO2 greenhouse emissions in Oman over the last forty-two years. Renew Sustain Energy Rev 52:1702–1712
Adom PK, Agradi M, Vezzulli A (2021) Energy efficiency-economic growth nexus: What is the role of income inequality? J Clean Prod 310:127382
Ahmed Z, Ali S, Saud S, Shahzad SJH (2020a) Transport CO2 emissions, drivers, and mitigation: an empirical investigation in India. Air Qual Atmos Health 13(11):1367–1374
Ahmed Z, Asghar MM, Malik MN, Nawaz K (2020) Moving towards a sustainable environment: the dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China. Resour Polic 67:101677
Akram R, Chen F, Khalid F, Huang G, Irfan M (2021) Heterogeneous effects of energy efficiency and renewable energy on economic growth of BRICS countries: a fixed effect panel quantile regression analysis. Energy 215:119019
Alam MM, Murad MW, Noman AHM, Ozturk I (2016) Relationships among carbon emissions, economic growth, energy consumption and population growth: Testing Environmental Kuznets Curve hypothesis for Brazil, China, India and Indonesia. Ecol Ind 70:466–479
Al-Iriani MA (2006) Energy–GDP relationship revisited: an example from GCC countries using panel causality. Ener Pol 34(17):3342–3350
AlKhars M, Miah F, Qudrat-Ullah H, Kayal A (2020) A systematic review of the relationship between energy consumption and economic growth in GCC countries. Sustainability 12(9):3845
Al-Mulali U, Ozturk I, Lean HH (2015) The influence of economic growth, urbanization, trade openness, financial development, and renewable energy on pollution in Europe. Nat Hazards 79(1):621–644
Alsaedi MA, Abnisa F, Alaba PA, Farouk HU (2022) Investigating the relevance of Environmental Kuznets curve hypothesis in Saudi Arabia: towards energy efficiency and minimal carbon dioxide emission. Clean Technol Environ Polic. https://doi.org/10.1007/s10098-021-02244-3
Andrew and Peters (2021) The Global Carbon Project’s fossil CO2 emissions dataset. Available at https://figshare.com/articles/preprint/The_Global_Carbon_Project_s_fossil_CO2_emissions_dataset/16729084/1. Accessed 2 Feb 2022
Antonakakis N, Chatziantoniou I, Filis G (2017) Energy consumption, CO2 emissions, and economic growth: an ethical dilemma. Renew Sustain Energy Rev 68:808–824
Asteriou D, Spanos K (2019) The relationship between financial development and economic growth during the recent crisis: evidence from the EU. Financ Res Lett 28:238–245
Bataille C, Melton N (2017) Energy efficiency and economic growth: a retrospective CGE analysis for Canada from 2002 to 2012. Energy Econ 64:118–130
Batool Z, Raza SMF, Ali S, Abidin SZU (2022) ICT, renewable energy, financial development, and CO2 emissions in developing countries of East and South Asia. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-022-18664-7
Baydoun H, Aga M (2021) The effect of energy consumption and economic growth on environmental sustainability in the GCC countries: does financial development matter? Energies 14(18):5897
Bekhet HA, Matar A, Yasmin T (2017) CO2 emissions, energy consumption, economic growth, and financial development in GCC countries: dynamic simultaneous equation models. Renew Sustain Energy Rev 70:117–132
Bhattacharya M, Paramati SR, Ozturk I, Bhattacharya S (2016) The effect of renewable energy consumption on economic growth: evidence from top 38 countries. Appl Energy 162:733–741
Bilgili F, Koçak E, Bulut Ü (2016a) The dynamic impact of renewable energy consumption on CO2 emissions: a revisited Environmental Kuznets Curve approach. Renew Sustain Energy Rev 54:838–845
Bilgili F, Öztürk İ, Koçak E, Bulut Ü, Pamuk Y, Muğaloğlu E, Bağlıtaş HH (2016b) The influence of biomass energy consumption on CO2 emissions: a wavelet coherence approach. Environ Sci Pollut Res 23(19):19043–19061
British Petroleum. (2022). BP Statistical Review of World Energy. Available at https://www.bp.com/content/dam/bp/business-sites/en/global/corporate/xlsx/energy-economics/statistical-review/bp-stats-review-2021-all-data.xlsx. Accessed 2 Feb 2022
Charabi Y, Al Nasiri N, Al Awadhi T, Choudri BS, Al Bimani A (2020) GHG emissions from the transport sector in Oman: trends and potential decarbonization pathways. Energy Strat Rev 32:100548
Charfeddine L, Khediri KB (2016) Financial development and environmental quality in UAE: cointegration with structural breaks. Renew Sustain Energy Rev 55:1322–1335
Cheng CY, Chien MS, Lee CC (2021) ICT diffusion, financial development, and economic growth: an international cross-country analysis. Econ Model 94:662–671
Chishti MZ, Ahmed Z, Murshed M, Namkambe HH, Ulucak R (2021) The asymmetric associations between foreign direct investment inflows, terrorism, CO2 emissions, and economic growth: a tale of two shocks. Environ Sci Pollut Res 28(48):69253–69271
Danish, Ulucak R, Khan SUD (2020) Relationship between energy intensity and CO2 emissions: does economic policy matter? Sustain Dev 28(5):1457–1464
Dong K, Sun R, Hochman G (2017) Do natural gas and renewable energy consumption lead to less CO2 emission? Empirical evidence from a panel of BRICS countries. Energy 141:1466–1478
Farhani S, Ozturk I (2015) Causal relationship between CO2 emissions, real GDP, energy consumption, financial development, trade openness, and urbanization in Tunisia. Environ Sci Pollut Res 22(20):15663–15676
Fell H, Gilbert A, Jenkins JD, Mildenberger M (2022) Nuclear power and renewable energy are both associated with national decarbonization. Nat Energy 7(1):25–29
Fraser T, Bancroft M, Small A, Cunningham L (2022) Leaders or networkers? the role of mayors in renewable energy transition. Environ Innov Soc Trans 42:301–316
Gazdar K, Hassan MK, Safa MF, Grassa R (2019) Oil price volatility, Islamic financial development and economic growth in Gulf Cooperation Council (GCC) countries. Borsa Istanbul Rev 19(3):197–206
Gregory AW, Hansen BE (1996) Practitioners corner: tests for cointegration in models with regime and trend shifts. Oxford Bull Econ Stat 58(3):555–560
Ha NM, Ngoc BH (2021) Revisiting the relationship between energy consumption and economic growth nexus in Vietnam: new evidence by asymmetric ARDL cointegration. Appl Econ Lett 28(12):978–984
Hamdi H, Sbia R, Shahbaz M (2014) The nexus between electricity consumption and economic growth in Bahrain. Econ Model 38:227–237
Hamid I, Alam MS, Murshed M, Jena PK, Sha N, Alam MN (2021) The roles of foreign direct investments, economic growth, and capital investments in decarbonizing the economy of Oman. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-17246-3
Hassan T, Song H, Khan Y, Kirikkaleli D (2022) Energy efficiency a source of low carbon energy sources? Evidence from 16 high-income OECD economies. Energy 243:123063
Ibrahiem DM, Hanafy SA (2020) Dynamic linkages amongst ecological footprints, fossil fuel energy consumption and globalization: an empirical analysis. Manag Environ Qual 31(6):1549–1568
Ibrahim M, Alagidede P (2018) Effect of financial development on economic growth in sub-Saharan Africa. J Polic Model 40(6):1104–1125
Kamal A, Al-Ghamdi SG, Koç M (2019) Role of energy efficiency policies on energy consumption and CO2 emissions for building stock in Qatar. J Clean Prod 235:1409–1424
Kanat O, Yan Z, Asghar MM, Ahmed Z, Mahmood H, Kirikkaleli D, Murshed M (2022) Do natural gas, oil, and coal consumption ameliorate environmental quality? Empirical evidence from Russia. Environ Sci Pollut Res 29(3):4540–4556
Khan M, Ozturk I (2021) Examining the direct and indirect effects of financial development on CO2 emissions for 88 developing countries. J Environ Manag 293:112812
Khan I, Lei H, Shah AA, Khan I, Baz K, Koondhar MA, Hatab AA (2022) Environmental quality and the asymmetrical nonlinear consequences of energy consumption, trade openness and economic development: prospects for environmental management and carbon neutrality. Environ Sci Pollut Res 29:14654–14664. https://doi.org/10.1007/s11356-021-16612-5
Kihombo S, Saud S, Ahmed Z, Chen S (2021) The effects of research and development and financial development on CO2 emissions: evidence from selected WAME economies. Environ Sci Pollut Res 28(37):51149–51159
Kraft J, Kraft A (1978) On the relationship between energy and GNP. J Energy Dev 3:401–403
Krarti M, Dubey K, Howarth N (2019) Energy productivity analysis framework for buildings: a case study of GCC region. Energy 167:1251–1265
Li R, Wang Q, Liu Y, Jiang R (2021) Per-capita carbon emissions in 147 countries: The effect of economic, energy, social, and trade structural changes. Sustain Prod Consump 27:1149–1164. https://doi.org/10.1016/j.spc.2021.02.031
Lin B, Xu B (2018) Factors affecting CO2 emissions in China’s agriculture sector: a quantile regression. Renew Sustain Energy Rev 94:15–27
Magazzino C (2017) The relationship among economic growth, CO2 emissions, and energy use in the APEC countries: a panel VAR approach. Environ Syst Decis 37(3):353–366
Mahmood H, Alkhateeb TTY, Al-Qahtani MMZ, Allam Z, Ahmad N, Furqan M (2019) Agriculture development and CO2 emissions nexus in Saudi Arabia. PloS one 14(12):e0225865
Mahmood H, Adow AH, Abbas M, Iqbal A, Murshed M, Furqan M (2022) The fiscal and monetary policies and environment in GCC countries: analysis of territory and consumption-based CO2 emissions. Sustainability 14(3):1225
McNown R, Sam CY, Goh SK (2018) Bootstrapping the autoregressive distributed lag test for cointegration. Appl Econ 50(13):1509–1521
Mehrara M (2007) Energy consumption and economic growth: the case of oil exporting countries. Energy Polic 35:2939–2945
Menegaki AN (2011) Growth and renewable energy in Europe: a random effect model with evidence for neutrality hypothesis. Energy Econ 33(2):257–263
Mesagan EP, Olunkwa CN (2022) Heterogeneous analysis of energy consumption, financial development, and pollution in Africa: the relevance of regulatory quality. Util Polic 74:101328
Mezghani I, Haddad HB (2017) Energy consumption and economic growth: an empirical study of the electricity consumption in Saudi Arabia. Renew Sustain Energy Rev 75:145–156
Murshed M (2020) An empirical analysis of the non-linear impacts of ICT-trade openness on renewable energy transition, energy efficiency, clean cooking fuel access and environmental sustainability in South Asia. Environ Sci Pollut Res 27(29):36254–36281. https://doi.org/10.1007/s11356-020-09497-3
Murshed M (2021) LPG consumption and environmental Kuznets curve hypothesis in South Asia: a time-series ARDL analysis with multiple structural breaks. Environ Sci Pollut Res 28(7):8337–8372. https://doi.org/10.1007/s11356-020-10701-7
Murshed (2022) Pathways to clean cooking fuel transition in low and middle income Sub-Saharan African countries: the relevance of improving energy use efficiency. Sustain Prod Consump 30:396–412. https://doi.org/10.1016/j.spc.2021.12.016
Murshed M, Alam M (2021) Estimating the macroeconomic determinants of total, renewable, and non-renewable energy demands in Bangladesh: the role of technological innovations. Environ Sci Pollut Res 28(23):30176–30196
Murshed M, Ahmed R, Kumpamool C, Bassim M, Elheddad M (2021a) The effects of regional trade integration and renewable energy transition on environmental quality: Evidence from South Asian neighbours. Bus Strateg Environ 30:4154–4170. https://doi.org/10.1002/bse.2862
Murshed M, Alam R, Ansarin A (2021b) The environmental Kuznets curve hypothesis for Bangladesh: the importance of natural gas, liquefied petroleum gas and hydropower consumption. Environ Sci Pollut Res 28(14):17208–17227. https://doi.org/10.1007/s11356-020-11976-6
Murshed M, Nurmakhanova M, Al-Tal R, Mahmood H, Elheddad M, Ahmed R (2022) Can intra-regional trade, renewable energy use, foreign direct investments, and economic growth reduce ecological footprints in South Asia? Energy Sources B Econ Plan Polic. https://doi.org/10.1080/15567249.2022.2038730
Neagu O (2019) The link between economic complexity and carbon emissions in the European Union countries: a model based on the Environmental Kuznets Curve (EKC) approach. Sustainability 11(17):4753
Osman M, Gachino G, Hoque A (2016) Electricity consumption and economic growth in the GCC countries: panel data analysis. Energy Policy 98:318–327
Ozcan B, Ozturk I (2019) Renewable energy consumption-economic growth nexus in emerging countries: a bootstrap panel causality test. Renew Sustain Energy Rev 104:30–37
Ozturk I, Acaravci A (2013) The long-run and causal analysis of energy, growth, openness and financial development on carbon emissions in Turkey. Energy Econ 36:262–267
Ozturk I, Aslan A, Kalyoncu H (2010) Energy consumption and economic growth relationship: evidence from panel data for low and middle income countries. Energy Polic 38(8):4422–4442
Pesaran MH, Shin Y, Smith RJ (2001) Bounds testing approaches to the analysis of level relationships. J Appl Economet 16(3):289–326
Phillips PC, Hansen BE (1990) Statistical inference in instrumental variables regression with I (1) processes. Rev Econ Stud 57(1):99–125
Rajbhandari A, Zhang F (2018) Does energy efficiency promote economic growth? Evidence from a multicountry and multisectoral panel dataset. Energy Econ 69:128–139
Rej S, Bandyopadhyay A, Mahmood H, Murshed M, Mahmud S (2021) The role of liquefied petroleum gas in decarbonizing India: fresh evidence from wavelet – partial wavelet coherence approach. Environ Sci Pollut Res. https://doi.org/10.1007/s11356-021-17471-w
Salahuddin M, Gow J (2014) Economic growth, energy consumption and CO2 emissions in Gulf Cooperation Council countries. Energy 73:44–58
Salahuddin M, Gow J (2019) Effects of energy consumption and economic growth on environmental quality: evidence from Qatar. Environ Sci Pollut Res 26(18):18124–18142
Salahuddin M, Gow J, Ozturk I (2015) Is the long-run relationship between economic growth, electricity consumption, carbon dioxide emissions and financial development in Gulf Cooperation Council Countries robust? Renew Sustain Energy Rev 51:317–326
Salahuddin M, Alam K, Ozturk I, Sohag K (2018) The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait. Renew Sustain Energy Rev 81:2002–2010
Shahbaz M, Solarin SA, Mahmood H, Arouri M (2013) Does financial development reduce CO2 emissions in Malaysian economy? A time series analysis. Econ Model 35:145–152
Shahbaz M, Haouas I, Sohag K, Ozturk I (2020) The financial development-environmental degradation nexus in the United Arab Emirates: the importance of growth, globalization and structural breaks. Environ Sci Pollut Res 27(10):10685–10699
Shakib M, Yumei H, Rauf A, Alam M, Murshed M, Mahmood H (2022) Revisiting the energy-economy-environment relationships for attaining environmental sustainability: evidence from Belt and Road Initiative countries. Environ Sci Pollut Res 29(3):3808–3825
Shao X, Zhong Y, Liu W, Li RYM (2021) Modeling the effect of green technology innovation and renewable energy on carbon neutrality in N-11 countries? Evidence from advance panel estimations. J Environ Manag 296:113189
Sharma GD, Rahman MM, Jain M, Chopra R (2021) Nexus between energy consumption, information and communications technology, and economic growth: an enquiry into emerging Asian countries. J Public Affairs 21(2):e2172
Sinha A, Gupta M, Shahbaz M, Sengupta T (2019) Impact of corruption in public sector on environmental quality: implications for sustainability in BRICS and next 11 countries. J Clean Prod 232:1379–1393
Stock JH, Watson MW (1993) A simple estimator of cointegrating vectors in higher order integrated systems. Econometrica 61(4):783–820
Usman A, Ozturk I, Hassan A, Zafar SM, Ullah S (2021) The effect of ICT on energy consumption and economic growth in South Asian economies: an empirical analysis. Telemat Informat 58:101537
Wang Q, Wang S (2020) Preventing carbon emission retaliatory rebound post-COVID-19 requires expanding free trade and improving energy efficiency. Sci Total Environ 746:141158
Wang Q, Wang L (2020) Renewable energy consumption and economic growth in OECD countries: A nonlinear panel data analysis. Energy 207:118200
Wang Q, Zhang F (2020) Does increasing investment in research and development promote economic growth decoupling from carbon emission growth? An empirical analysis of BRICS countries. J Clean Prod 252:119853. https://doi.org/10.1016/j.jclepro.2019.119853
Wang S, Li Q, Fang C, Zhou C (2016) The relationship between economic growth, energy consumption, and CO2 emissions: empirical evidence from China. Sci Total Environ 542:360–371
Wang Q, Wang X, Li R (2022) Does urbanization redefine the environmental Kuznets curve? An empirical analysis of 134 Countries. Sustain Cities Soc 76:103382. https://doi.org/10.1016/j.scs.2021.103382
Wasti SKA, Zaidi SW (2020) An empirical investigation between CO2 emission, energy consumption, trade liberalization and economic growth: a case of Kuwait. J Build Eng 28:101104
World Bank (2022) World Development Indicators. The World Bank. Available at https://databank.worldbank.org/reports.aspx?source=2&series=IP.PAT.RESD&country=#. Accessed 2 Feb 2022
World Health Organization (2015) Climate and Health Country Profile-2015: Oman. The United Nations. Available at https://apps.who.int/iris/handle/10665/208866. Accessed 2 Feb 2022
Yasmeen H, Tan Q, Zameer H, Vo XV, Shahbaz M (2021) Discovering the relationship between natural resources, energy consumption, gross capital formation with economic growth: can lower financial openness change the curse into blessing. Resour Polic 71:102013
Zaman KAU, Kalirajan K (2019) Strengthening of energy security & low-carbon growth in Asia: Role of regional energy cooperation through trade. Energy Polic 133:110873
Zivot E, Andrews DWK (2002) Further evidence on the great crash, the oil-price shock, and the unit-root hypothesis. J Bus Econ Stat 20(1):25–44
Author information
Authors and Affiliations
Contributions
Md Shabbir Alam conceptualized and wrote the final manuscript. Mohammad Noor Alam analyzed the data and helped in drafting the original manuscript. Muntasir Murshed wrote the original manuscript, assisted in the literature review, methodology, analysis, and discussions. Haider Mahmood helped in discussions and analysis. Risana Alam conducted the analysis and edited the final manuscript.
Corresponding authors
Ethics declarations
Ethics approval and consent to participate
Not applicable.
Consent for publication
Not applicable.
Competing interests
The authors declare no competing interests.
Additional information
Responsible Editor: Ilhan Ozturk
Publisher’s note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Alam, M., Alam, M., Murshed, M. et al. Pathways to securing environmentally sustainable economic growth through efficient use of energy: a bootstrapped ARDL analysis. Environ Sci Pollut Res 29, 50025–50039 (2022). https://doi.org/10.1007/s11356-022-19410-9
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s11356-022-19410-9