Impact of income, trade, urbanization, and financial development on CO2 emissions in the GCC countries

Abstract

This study aims to explain the relationship between income, trade, urbanization, and financial development towards the degree of carbon dioxide emissions. The main purpose of the research is an econometric model which tries to study the interaction between the level of carbon dioxide emissions with income, trade, urbanization, and financial development. Through a study based on a sample composed of the Gulf Cooperation Council (GCC) countries. We propose an empirical investigation based on the use of econometric modeling, cointegration techniques, and the Granger causality test and the VECM. By using a panel sample composed of the Gulf Cooperation Council (GCC) countries from the period 1995 to 2016 the results prove a positive and significant long term relationship between income, trade, urbanization, and financial development and CO2 emissions. Also, the results denote that a higher level of country income and urbanization generates a high level of CO2 emissions. Afterward, financial Development had a positive effect on CO2 emission level. And finally, trade openness influences negatively the CO2 emissions.

Impact of Coastal Urbanization on Marine Pollution: Evidence from China

“…In term of different pollutants (PM 2.5 , CO 2 , etc. ), many have studies found that there is a significant positive correlation between urbanization and various pollutants by using national level data [ 18 , 19 , 20 ]. For the Chinese case, Shao et al [ 21 ] used NTL data to represent the urbanization level and found that China’s urbanization and haze present positive monotonous relationships at the national level.…”