Contact us
[email protected] | |
3275638434 | |
Paper Publishing WeChat |
Useful Links
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License
Article
On the Relationship of Energy and CO2: The Effect of Financial Deep on Oil Producing Countries
Author(s)
Mónica Alexandra Lopes
José Alberto Fuinhas, António Cardoso Marques
Full-Text PDF XML 519 Views
DOI:10.17265/1537-1514/2017.03.002
Affiliation(s)
University of Beira Interior, Covilhã, Portugal
NECE-UBI and University of Beira Interior, Covilhã, Portugal
ABSTRACT
The relationship
between energy and carbon dioxide (CO2) emissions and the financial depth
was appraised within a panel of thirteen oil producing countries. The role of CO2 is analysed as economic growth driver and as explained variable. An Autoregressive
Distributed Lag model with annual frequency data for the period from 1970 to 2012
was used. The paper showed that CO2 promotes economic growth in the short-run. The CO2 causes growth in long- and short-run. The ratio between oil production
and primary energy consumption impacts economic growth and the reduction of CO2 in long- and short-run. The financial depth increases CO2 in short-run
and depresses economic growth both in long- and short-run. The results for oil producing
countries reveal bidirectional causality between CO2 and economic growth.
Therefore, policymakers of oil producing countries should be aware that economic
growth may lead to an increase of CO2.
KEYWORDS
ARDL, carbon dioxide emissions, financial development, oil producing countries, economic growth, inflation
Cite this paper
References