Dynamic impacts of economic growth, energy use, tourism, and agricultural productivity on carbon dioxide emissions in Egypt

Abstract

Global climate change, exacerbated by greenhouse gas (GHG) emissions, notably carbon dioxide (CO2), provides a huge danger to lives, the global environment, and development. The current study explored the dynamic effects of economic growth, fossil fuel energy consumption, renewable energy consumption, tourism, and agricultural productivity on CO2 emissions in Egypt. The Dynamic Ordinary Least Squares (DOLS) method was used to analyze time series data from 1990 to 2019. The empirical findings revealed that, while economic growth, the use of fossil fuel energy, and tourism contribute to environmental damage by cumulative CO2 emissions in Egypt, an increased share of renewable energy and agricultural productivity contribute to improved environmental quality by lowering CO2 emissions. Similar results were obtained using alternative estimators such as fully modified least squares (FMOLS) and canonical cointegrating regression (CCR). Furthermore, the pairwise Granger causality test was used to determine the causal relationship between the variables. This study adds to the current literature by putting light on the causes of pollution in Egypt. This article made policy ideas for a low-carbon economy, boosting renewable energy consumption, green tourism, and climate-smart agriculture, all of which would assure environmental sustainability in Egypt by lowering emissions.