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    Testing environmental Kuznets curve hypothesis: The role of renewable and non-renewable energy consumption and trade in OECD countries
    (ELSEVIER SCIENCE BV, 2016) Ben Jebli, Mehdi; Ben Youssef, Slim; Öztürk, İlhan
    This paper investigates the causal relationships between per capita CO2 emissions, gross domestic product (GDP), renewable and non-renewable energy consumption, and international trade for a panel of 25 OECD countries over the period 1980-2010. Short-run Granger causality tests show the existence of bidirectional causality between: renewable energy consumption and imports, renewable and non-renewable energy consumption, non-renewable energy and trade (exports or imports); and unidirectional causality running from: exports to renewable energy, trade to CO2 emissions, output to renewable energy. There are also long-run bidirectional causalities between all our considered variables. Our long-run fully modified ordinary least squares (FMOLS) and dynamic ordinary least squares (DOLS) estimates show that the inverted U-shaped environmental Kuznets curve (EKC) hypothesis is verified for this sample of OECD countries. They also show that increasing non-renewable energy increases CO2 emissions. Interestingly, increasing trade or renewable energy reduces CO2 emissions. According to these results, more trade and more use of renewable energy are efficient strategies to combat global warming in these countries.
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    The Role of renewable energy consumption and trade: environmental Kuznets Curve analysis for sub-saharan Africa countries
    (WILEY, 2015) Ben Jebli, Mehdi; Ben Youssef, Slim; Öztürk, İlhan
    Based on the Environmental Kuznets Curve (EKC) hypothesis, this paper uses panel cointegration techniques to investigate the short-and long-run relationship between CO2 emissions, gross domestic product (GDP), renewable energy consumption and international trade for a panel of 24 sub-Saharan Africa countries over the period 1980-2010. Short-run Granger causality results reveal that there is a bidirectional causality between emissions and economic growth; bidirectional causality between emissions and real exports; unidirectional causality from real imports to emissions; and unidirectional causality runs from trade (exports or imports) to renewable energy consumption. There is an indirect short-run causality running from emissions to renewable energy and an indirect short-run causality from GDP to renewable energy. In the long-run, the error correction term is statistically significant for emissions, renewable energy consumption and trade. The long-run estimates suggest that the inverted U-shaped EKC hypothesis is not supported for these countries; exports have a positive impact on CO2 emissions, whereas imports have a negative impact on CO2 emissions. As a policy recommendation, sub-Saharan Africa countries should expand their trade exchanges particularly with developed countries and try to maximize their benefit from technology transfer occurring when importing capital goods as this may increase their renewable energy consumption and reduce CO2 emissions.