Oil consumption, CO2 emission and economic growth in MENA countries

This study examines the impact of oil consumption on the economic growth of the MENA countries during the period 1980-2009. The panel model is employed in this study. Based on the cointegration test results, it was found that CO2 emission, and oil consumption has a long run relationship with economic growth. Moreover, there is also a bi-directional Granger causality between oil consumption, CO2 emission and economic growth in both the short run and the long run. The results of this study show clearly that oil consumption plays an important role in the economic growth of the MENA countries. (C) 2011 Elsevier Ltd. All rights reserved.