Carbon dioxide emissions, output, and energy consumption categories in Algeria.

Abstract

This study examines the relation between CO2 emissions, income, non-renewable, and renewable energy consumption in Algeria during the period extending from 1980 to 2011. Our work gives particular attention to the validity of environmental Kuznets curve (EKC) hypothesis. The autoregressive distributed lag (ARDL) with break point method outcome demonstrates the positive effect of non-renewable type of energy on CO2 emissions consumption. On the contrary, the results reveal an insignificant effect of renewable energy on environment improvement. Moreover, the results accept the existence of EKC hypothesis but the highest gross domestic product value in logarithm scale of our data is inferior to the estimated turning point. Consequently, policy-makers in Algeria should expand the ratio of renewable energy and should decrease the quota of non-renewable energy consumption.