Assessing the role of financial efficiency and renewable energy consumption in reducing co2 emis sions: evidence from GCC economies using panel data quantile regression

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Muawya Ahmed Hussein

Dhofar University, Oman

: J Biodivers Manage Forestry

Abstract

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As prominent oil producers, Gulf Cooperation Council (GCC) countries have played a significant role in the global energy market. However, as the worlds attention increasingly shifts towards environmental sustainability, understanding the implications of the GCCs economic activities on emissions becomes indispensable. This research paper investigates the relationship between specific economic indicators and their impact on CO2 emissions in the GCC from 2001 to 2021. This study employs quantile regression, a robust statistical method that estimates the conditional quantiles of a response variable given a set of predictor variables. The findings reveal several essential insights: Financial institution efficiency is significant and negative at a 1% level at the lower (10th, -83,537.3) and higher quantiles (90th, -549,002.3). The relationship between the GDP per capita and CO2 emissions varies across quantiles, highlighting the complexity of the growthâ??environment nexus. Total patents exhibit a positive and significant relationship with emissions, underscoring the importance of directing innovation towards environmentally sustainable solutions. Renewable energy consumption displays a nuanced relationship with CO2 emissions, with a more substantial negative impact observed at higher consumption levels. This underscores the potential of renewable energy to mitigate emissions when integrated at scale. This studyâ??s outcomes hold crucial policy implications for GCC countries as they seek to align economic growth with environmental sustainability. The findings emphasize the importance of fostering financial institution efficiency, promoting green innovation, and expanding renewable energy sources to reduce emissions.

Biography

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Muawya Ahmed Hussein (Ph.D) is an Assistant Professor in the Department of Finance and Economics at Dhofar University, where I have been since 2004. From 2012 to 2016 I served as Department Chair. From 2019 till 2022 I served as Convener of Master Program. My research interests span Environmental Economics, Financial Economics and Entrepreneurship. I have published more than 30 papers (in international refereed journals as an author and co-author), four book chapters and three books. As of 2024, Google Scholar reports over 578 citations to my work.