Economic growth, combustible renewables and waste consumption, and CO2 emissions in North Africa

Ben Jebli, Mehdi; Ben Youssef, Slim

Economic growth, combustible renewables and waste consumption, and CO2 emissions in North Africa

2015

Ben Jebli, Mehdi | Ben Youssef, Slim

This paper uses panel cointegration techniques and Granger causality tests to examine the dynamic causal link between per capita real gross domestic product (GDP), combustible renewables and waste (CRW) consumption, and CO₂ emissions for a panel of five North African countries during the period 1971–2008. Granger causality test results suggest short- and long-run unidirectional causalities running from CO₂ emissions and CRW consumption to real GDP and a short-run unidirectional causality running from CRW to CO₂ emissions. The results from panel long-run fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) estimates show that CO₂ emissions and CRW consumption have a positive and statistically significant impact on GDP. Our policy recommendations are that these countries should use more CRW because this increases their output, reduces their energy dependency on fossil energy, and may decrease their CO₂ emissions.

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