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The impact of energy consumption, economic growth, FDI and urbanization on CO2 emissions: Empirical evidence from Egypt

Abeer Rashdan,Wafaa S. H. Ibrahim

Published 2023 in MSA-Management Sciences Journal

ABSTRACT

: Climate change has become one of the most significant environmental pressures affecting sustainable economic growth for all countries around the world. Although Egypt's historical share of global emissions is not high; it is estimated at 0.6% of global emissions, Egypt is recognized as highly vulnerable to climate change impacts especially in agricultural production and higher temperatures effects. The study aims to investigate the impact of energy consumption, economic growth, FDI, and urbanization on CO2 emissions in Egypt. The research employs a VAR testing method (vector auto-regression). The method used required the Error Correction Model (short run and long run) for the period (1990-2021). The results were very controversial: both FDI and urbanization have a statistically positive impact on CO2 emissions, while energy consumption and economic growth have a significant negative effect in the long run. However, all four variables have no impact on carbon dioxide emissions in the short run.

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