This study examined the empirical effects of economic growth, electricity consumption, foreign direct investment (FDI), and financial development on carbon dioxide (CO2) emissions in Kuwait using time series data for the period 1980–2013. To achieve this goal, we applied the autoregressive distributed lag (ARDL) bounds testing approach and found that cointegration exists among the series. Findings indicate that economic growth, electricity consumption, and FDI stimulate CO2 emissions in both the short and long run. The VECM Granger causality analysis revealed that FDI, economic growth, and electricity consumption strongly Granger-cause CO2 emissions. Based on these findings, the study recommends that Kuwait reduce emissions by expanding its existing Carbon Capture, Utilization, and Storage plants; capitalizing on its vast solar and wind energy; reducing high subsidies of the residential electricity scheme; and aggressively investing in energy research to build expertise for achieving electricity generation efficiency.

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The effects of electricity consumption, economic growth, financial development and foreign direct investment on CO2 emissions in Kuwait

Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneous-equation models

1. Control Methodology 2. Dynamical Systems 3. Applications to Social and Environmental Problems

Dynamics and Control

In this article, we investigate the causality links between CO2 emissions, foreign direct investment, and economic growth using dynamic simultaneous-equation panel data models for a global panel of 54 countries over the period 1990–2011. We also implement these empirical models for 3 regional sub-panels: Europe and Central Asia, Latin America and the Caribbean, and the Middle East, North Africa, and sub-Saharan Africa. Our results provide evidence of bidirectional causality between FDI inflows and economic growth for all the panels and between FDI and CO2 for all the panels, except Europe and North Asia. They also indicate the existence of unidirectional causality running from CO2 emissions to economic growth, with the exception of the Middle East, North Africa, and sub-Sahara panel, for which bidirectional causality between these variables cannot be rejected. These empirical insights are of particular interest to policymakers as they help build sound economic policies to sustain economic development.

Causal interactions between CO2 emissions, FDI, and economic growth: Evidence from dynamic simultaneousequation models

We evaluate the N-shaped environmental Kuznets curve (EKC) using panel quantile regression analysis. We investigate the relationship between CO2 emissions and GDP per capita for 74 countries over the period of 1994-2012. We include additional explanatory variables, such as renewable energy consumption, technological development, trade, and institutional quality. We find evidence for the N-shaped EKC in all income groups, except for the upper-middle-income countries. Heterogeneous characteristics are, however, observed over the N-shaped EKC. Finally, we find a negative relationship between renewable energy consumption and CO2 emissions, which highlights the importance of promoting greener energy in order to combat global warming.

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The N-shaped environmental Kuznets curve: an empirical evaluation using a panel quantile regression approach

https://isiarticles.com/bundles/Article/pre/pdf/12839.pdf

The causal nexus between financial development and economic growth in Kenya

On the time scale behavior of equity-commodity links: Implications for portfolio management

The introduction of Euro currency was a game-changing event intended to induce convergence of Eurozone business cycles on the basis of greater monetary and fiscal integration. The benefit of partic ...

/pdf/business-cycle-de-synchronization-in-the-aftermath-of-the-3vg4yfwztq.pdf

Business cycle (de)synchronization in the aftermath of the global financial crisis: implications for the Euro area

This study provides an assessment of the main drivers of inflation in Ethiopia and Kenya by developing single-equation error correction models for the Consumer Price Index in each country. This app ...

/pdf/the-dynamics-of-inflation-in-ethiopia-and-kenya-sjj0g7mm12.pdf

Bo Sjö

Papers

The causal nexus between financial development and economic growth in Kenya

On the time scale behavior of equity-commodity links: Implications for portfolio management

Business cycle (de)synchronization in the aftermath of the global financial crisis: implications for the Euro area

The Dynamics of Inflation in Ethiopia and Kenya

Commodities price cycles and their interdependence with equity markets