Carbon Dioxide Emissions and Economic Growth in the Oil, Gas, and Cement Industries of Gulf Countries: A Panel Autoregressive Distributed Lag Analysis for Sustainable Development

Abstract

Purpose: The purpose of this study was twofold: to examine the correlation between CO2 emissions and economic development in the Gulf Cooperation Council (GCC) countries and to compare the contributions of the oil, gas, and cement sectors to the CO2 emission in each GCC country.
Study design/methodology/approach: The research design used was descriptive, and cross-sectional independence, panel autoregressive distributed lag, pooled ordinary least squares and ordinary least squares methods were used to analyze data.
Sample and data: The study used secondary data on CO2 emissions and gross domestic product (GDP) growth rates from 1981 to 2021 and on the specific contributions of the oil, gas, and cement sectors from 1985 to 2022.
Results: The study found a long-term cointegration between CO2 emissions and the GDP growth rate in the GCC countries. However, in short term, economic growth did not have a significant impact on CO2 emissions. The major contributor to the CO2 emissions in Oman, Kuwait, Saudi Arabia, and Qatar was the oil sector, whereas that in the United Arab Emirates was the cement sector. CO2 emissions in Bahrain were significantly affected by the gas sector.
Originality/value: The work is original and innovative, offering new insights through sector-specific comparisons across the GCC countries. It emphasizes the urgent need to cultivate renewable energy sources to protect the environment.
Research limitations/implications: The study excludes the transportation, manufacturing, and agriculture sectors, although these also significantly contribute to CO2 emissions. The study suggests the need for targeted policies to mitigate emissions and promote sustainable development in the GCC countries.