This study investigates the impact of energy intensity and CO2 emissions on economic growth in Gulf Cooperation Council (GCC) countries, aiming to understand the interplay between energy consumption, environmental sustainability, and economic performance. We analyze data from 1990 to 2023 across six GCC countries. The study employs the fixed effects model, random effects model, and pooled regression model to examine the relationships between energy intensity, CO2 emissions, and GDP growth, controlling for factors such as foreign direct investment, trade openness, population, unemployment, and urbanization. Our findings reveal a significant negative impact of energy intensity on economic growth, and an increase in energy intensity is associated with a decrease of approximately 0.2969 units in GDP, indicating that higher energy consumption per unit of output hinders economic performance. While CO2 emissions positively affect growth in GCC countries, a one-unit increase in CO2 emissions is associated with an increase of approximately 0.3961 units in GDP. The study emphasizes the necessity for GCC countries to adopt sustainable energy practices to reduce energy intensity and boost economic growth. By aligning economic strategies with environmental sustainability goals, these nations can achieve long-term growth while effectively addressing the challenges of climate change. This research contributes to the ongoing discourse on sustainable development in the region and underscores the importance of harmonizing economic growth strategies with environmental objectives.
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