Analyzing the relationship between economic growth and environmental deterioration by evaluating the environmental Kuznets curve hypothesis: a case study of a group of oil-producing countries from( 2003- 2022)

Abstract

One of the main objectives that nations strive to accomplish through the use and optimization of natural resources, i.e., maintaining a clean environment, is the promotion of sustainable economic growth. The study aims to analyze the relationship between economic growth and environmental deterioration and to achieve the main hypotheses of the environmental Kuznets curve in the group of Arab oil countries during the period 2003–2022. To accomplish this purpose, the study used a descriptive and analytical strategy that relied on time series data for each country as well as sectional time series (panel data), as well as the usage of (integrating regression, PRM, and FEM REM), Considering that the average per capita carbon dioxide emissions is the environmental variable and the average per capita GDP is economic growth and energy consumption as a mediating variable, Finally, the study concluded that there is a positive relationship between economic growth (linear) and environmental degradation and a negative relationship between economic growth (quadratic) and environmental degradation; that is, the hypotheses of the environmental Kuznets curve invert (u) shape coincide in the selected countries in the time series and sectional time series analyses (Panel Data). However, the turning points are outside the range of the average per capita GDP in the Arab oil-producing countries, implying that the per capita GDP in these countries has not reached a level conducive to sustainable economic growth. Finally, since energy consumption has a significant impact on environmental degradation, these countries must increase energy efficiency, transition to clean technologies, and expand the use of renewable energy in their productive sectors.