Abstract
THE RELATIONSHIP BETWEEN ENERGY USE, CO2 EMISSION AND ECONOMIC GROWTH in OPEC COUNTRIES
Energy is so significant issue in terms of countries’ economic develelopment, growth and welfare. Hovewer, the allocation of energy sources between countries is not fair. Therefore, it is discussed in academic literature that dependency of energy sources is more for some countries due to insufficient resources. On the other hand, there is positive correlation between energy sources and its consumption and the underlying reason seems as war. In this paper, 4 OPEC countries including Saudi Arabia, Qatar, Indonesia and Venezuela have examined in terms of energy use, GDP and CO2. Data is derived from World Banks’ official website from 1971 to 2013 as annual. Johansen co-integration test is used in order to determine long-term relationship between variables. According to results of Johansen co-integration test, there is long-term stable relationship between variables. The p-value of the variables are less than 0.05. Consequently, according to Johansen co-integration test results, OPEC countries do not ignore the environment and due to that fact, countries should develop constructive precautions by initiating the executive branch to prevent environmental pollution.
Keywords
International Economics, International Trade, Energy Use, GDP, Co-integration Test
