Electricity consumption, CO2 emission, and economic growth in the Middle East

This study examines the impact of electricity consumption on the economic growth in the Middle East countries during the period 1990-2008. The panel model is used in this study. Based on the cointegration test results, it is found that CO2 emission and electricity consumption have a long-run relationship with economic growth. Moreover, there is also a bi-directional Granger causality between electricity consumption, CO2 emission, and economic growth in both the short run and the long run. The results of this study show clearly that electricity consumption plays an important role in the economic growth of the Middle East countries.