Energy consumption, CO2 emissions and economic growth nexus: Evidence from panel Granger causality test

This paper examines the empirical causal relationship between energy consumption, CO2 emissions and economic growth for six oil-exporting countries from the Golf Cooperation Council (GCC) region over the period 2000:2011. Bootstrap panel Granger causality test approach is used which take account the cross-sectional dependency and the heterogeneity across countries. The empirical results support a bi-directional causality between economic growth and energy consumption for Bahrin and one-way Granger causality running from economic growth to energy consumption for United Emirate Arab and Qatar. Regarding to GDP-CO2 emissions nexus, a reverse relationship from CO2 to GDP for Bahrin and Kuwait is found. However, a two-way Granger causality between CO2 emissions and energy consumption for United Arab Emirate is found