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Open AccessArticle

Drivers of CO2-Emissions in Fossil Fuel Abundant Settings: (Pooled) Mean Group and Nonparametric Panel Analyses

1
Institute of Development Research and Development Policy, Ruhr-University, 44801 Bochum, Germany
2
Centre for Environment, Resources and Energy (CURE), Faculty of Management and Economics, Ruhr-University, 44801 Bochum, Germany
3
Center for Economic Development and Social Change (CET), 80128 Napoli, Italy
4
Energy Transitions at Cambridge (Visiting), University of Cambridge, Cambridge CB3 9DD, UK
5
Centre for Studies on European Economy (AIM), Azerbaijan State University of Economics (UNEC), Baku AZ1001, Azerbaijan
6
South African German Center of Development Research, University of the Western Cape, Cape Town 7535, South Africa
*
Author to whom correspondence should be addressed.
Energies 2020, 13(15), 3956; https://doi.org/10.3390/en13153956
Received: 24 May 2020 / Revised: 30 June 2020 / Accepted: 16 July 2020 / Published: 1 August 2020
(This article belongs to the Section Energy and Environment)
The present inquiry addresses the income-environment relationship in oil-producing countries and scrutinizes the further drivers of atmospheric pollution in the respective settings. The existing literature that tests the environmental Kuznets curve hypothesis within the framework of the black-box approaches provides only a bird’s-eye perspective on the long-run income-environment relationship. The aspiration behind this study is making the first step toward the disentanglement of the sources of carbon dioxide emissions, which could be employed in the pollution mitigation policies of this group of countries. Based on the combination of two strands of literature, the environmental Kuznets curve conjecture and the resource curse, the paper at hand proposes an augmented theoretical framework of this inquiry. To approach the research questions empirically, the study employs advanced panel cointegration techniques. To avoid econometric misspecification, the study also employs for the first time a nonparametric time-varying coefficient panel data estimator with fixed effects (NPFE) for the dataset of 37 oil-producing countries in the time interval spanning between 1989 and 2019. The empirical analysis identifies the level of per capita income, the magnitude of oil rents, the share of fossil fuel-based electricity generation in the energy mix, and the share of the manufacturing sector in GDP as essential drivers of carbon dioxide emissions in the oil-rich countries. Tertiarization, on the contrary, leads to a substantial reduction of emissions. Another striking result of this study is that level of political rights and civil liberties are negatively associated with per capita carbon emissions in this group of countries. Furthermore, the study decisively rejects an inverted U-shaped income-emission relationship and validates the monotonically or exponentially increasing impact of average income on carbon dioxide emissions. View Full-Text
Keywords: fossil fuels; electricity production; atmospheric pollution; structural change; autocracies; multicollinearity; confounding variable; pooled mean group; nonparametric fixed effects fossil fuels; electricity production; atmospheric pollution; structural change; autocracies; multicollinearity; confounding variable; pooled mean group; nonparametric fixed effects
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MDPI and ACS Style

Sadik-Zada, E.R.; Loewenstein, W. Drivers of CO2-Emissions in Fossil Fuel Abundant Settings: (Pooled) Mean Group and Nonparametric Panel Analyses. Energies 2020, 13, 3956. https://doi.org/10.3390/en13153956

AMA Style

Sadik-Zada ER, Loewenstein W. Drivers of CO2-Emissions in Fossil Fuel Abundant Settings: (Pooled) Mean Group and Nonparametric Panel Analyses. Energies. 2020; 13(15):3956. https://doi.org/10.3390/en13153956

Chicago/Turabian Style

Sadik-Zada, Elkhan R.; Loewenstein, Wilhelm. 2020. "Drivers of CO2-Emissions in Fossil Fuel Abundant Settings: (Pooled) Mean Group and Nonparametric Panel Analyses" Energies 13, no. 15: 3956. https://doi.org/10.3390/en13153956

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