Abstract
Current literature conveys that in spite of multiple studies being conducted to
explore the influences of various macroeconomic factors both geographical
and non-geographical on the CO2 emissions in different parts of the world,
there is a scarcity of the same analyses from oil-producing countries. In this
study, we reveal a new dimension by investigating the dynamic linkage of
climate change, economic growth, energy use, and agricultural and rural
development to the CO2 emissions of oil-producing countries around the
world. In doing so, we apply Pedroni and Kao panel cointegration test, vector
error correction model (VECM), pairwise Granger causality test, impulse
response function (IRF), and some supportive models such as-generalized
method of moments (GMM), and fixed-effect models. Our primary VAR-based
models’ evidence that energy use (EUE), foreign direct investment (FDI), and
trade to GDP (TPR) rate have both short-run and long-run casual
consequences in CO2 emissions, while only long-run Granger causality is
running from agricultural land ratio (ALR), forest area ratio (FAR), gross
domestic product (GDP), population growth rate (PGR), renewable energy
consumption (REC), and rural population rate (RPR) to CO2 emissions.
However, bidirectional associations are observed between CO2 to foreign
direct investment and trade percentage rate; EUE to renewable energy
consumption and TPR; and TPR to FDI and gross domestic product. To
demonstrate the significant impact, our secondary analysis tools GMM and
fixed-effect regressions’ results disclose that high energy use and more
domestic products significantly contaminate the environmental condition
by increasing CO2 emissions in the atmosphere. Hence, our research
provides great implications for the authorities of government, producers,
businessmen, and general public in the oil-producing countries to ensure a
sustainable environment by reducing energy use or alternating with
renewable energies and emphasizing environmentally friendly products
production over the long-run rather than conventional products
production in the short-run.
