Evaluating the Impact of Carbon Emissions on Iraq's Economic Growth

Bala, Hussaini and Aliyu Mustapha, Umar and Ya'u, Abba and Khatoon, Ghousia and Nik Mohd Rashid, Norfadzilah (2023) Evaluating the Impact of Carbon Emissions on Iraq's Economic Growth. Review of Economics and Finance, 21 (1). pp. 1647-1653. ISSN 1923-8401

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Abstract

Environmental pandemonium is said to have emerged from global warming which influences water availability, sea levels, food production, and weather patterns. These are all caused by CO2 emissions, which might have a large influence on economic growth. However, there is limited evidence about the link between CO2 emanations and economic growth in Iraq. Thus, there is a need to empirically examine how CO2 emissions influence economic growth in Iraq. Therefore, this study applies the Environmental Kuznets Curvature perspective (EKC) to examine the influence of CO2 emanations on economic growth in Iraq. Data was extracted from the World Bank for the period 1991 to 2020. 2gls regression model was used to account for possible endogeneity and reverse causality in the data set. The results from the analysis show that an increase in CO2 emissions via manufacturing and construction and CO2 emissions via agricultural methane increase GDP growth per capita. Consistent with the environmental Kuznets curve (EKC) theory, it was found that an increase in CO2 emissions via gaseous fuel consumption, CO2 emissions via liquid fuel consumptions, and CO2 emissions via energy-related methane have an inverse link with GDP growth per capita. The findings of the study will be useful for law makers in implementing policies and strategies related to greenhouse gas emissions and economic expansion in Iraq.

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