Carbon footprint, renewable energy, non-renewable energy, and livestock: testing the environmental Kuznets curve hypothesis for the Arab world

Abstract

The current study employs a different environmental impact indicator called “carbon footprint” rather than carbon dioxide (CO2) emissions, which several studies have been used neglecting methane (CH4) emissions. Therefore, it examines the relationship between carbon footprint, real income, energy by sources, and livestock in the Arab world for the period 1980–2014. A quadratic relation between carbon footprint and real income is found, supporting the hypothesis of environmental Kuznets curve (EKC). Furthermore, renewable energy is found to mitigate carbon footprint, although non-renewable energy and livestock contribute to it. A short-run unidirectional causal relationship is found running from renewable energy to carbon footprint and livestock, from non-renewable energy to carbon footprint and livestock, and from carbon footprint to real income and livestock. Regarding the long-run dynamics, bidirectional causal relationship between carbon footprint and non-renewable energy is existed. Based on that, the paper suggests that renewable energy and sustainable food production and consumption patterns could be pivotal remedies in carbon footprint mitigation in Arab countries.