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Determinants of CO2 emissions: empirical evidence from Egypt

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Abstract

This paper aims to explore the main determinants of environmental quality in Egypt by utilizing the data covering the years from 1971 to 2014. These dynamics were explored by utilizing the ARDL, wavelet coherence and Gradual shift causality approaches. The ARDL bounds test revealed cointegration among series. Findings based on the ARDL revealed; (i) positive and significant interaction between energy usage and CO2 emissions; (ii) no evidence of significant link was found between urbanization and CO2 emissions; (iii) no significant link was found between gross capital formation and CO2 emissions; and (iv) GDP growth impact CO2 emissions positively in Egypt. Furthermore, findings from the wavelet coherence technique provide supportive evidence for the ARDL estimate. The Gradual shift causality test revealed one-way causality from CO2 emissions to energy consumption and economic growth, while there is evidence of feedback causality between CO2 and gross capital formation. Based on these findings, policymakers in Egypt need to formulate environmental policies to promote sustainable urbanization and clean energy without undermining economic growth.

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Notes

  1. In ARDL testing, five different cases usually surface. The first scenario is the application of the bound test with trend and intercept, the second case is the application of bounds test with restricted intercept and without trend, the third case is without unconstrained determinist interception and trend, the fourth scenario is the application of the bounds test with an unconstrained determinist interception and limited trend, and the fifth scenario is the application of the bounds test with an unconstrained interception and limited trend.

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Authors and Affiliations

  1. Department of Business Administration, Faculty of Economic and Administrative Science, Cyprus International University, Northern Cyprus, Mersin 10, Nicosia, Turkey

    Tomiwa Sunday Adebayo

  2. Department of Economics, Faculty of Economic and Administrative Science, European University of Lefke, Northern Cyprus, Mersin 10, Lefke, Turkey

    Demet Beton Kalmaz

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  1. Tomiwa Sunday Adebayo
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Correspondence to Tomiwa Sunday Adebayo.

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Adebayo, T.S., Beton Kalmaz, D. Determinants of CO2 emissions: empirical evidence from Egypt. Environ Ecol Stat 28, 239–262 (2021). https://doi.org/10.1007/s10651-020-00482-0

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