Evaluating the effects of energy and economic growth on Carbon dioxide emission (using spatial panel data)

Energy is one of the most important inputs in production. Energy usage and energy diffusion of fossil fuels in process of production cause greenhouse gases (CO₂) emission and destruction of environment. According to the importance of issues like energy usage and economic growth, this paper, concerning the effects of proximity, evaluates the effects of energy usage and economic growth on emission of Carbon dioxide (CO₂) in MENA Zone countries during the period of 1994-2013. In every country, greenhouse gases (CO₂) emission is the function of not only domestic factors but also economic activities of neighboring countries.

The results of the model estimation indicate that proximity effect is verified in the model studying on. Also, the results show that log variable of energy usage has positive and significant effect on CO₂ emission. Log variable of income per capita affects CO₂ emission positively and significantly, and square log variable of per capita income has negative and significant effect on dependent variable. So environmental Kuznets hypothesis is rejected in MENA Zone.