Simultaneous Consumption of Renewable and Nonrenewable Energy, in Environmental Kuznets Curve in Some Selected OPEC Countries: PMG Method

Nowadays, greenhouse gas emissions and consumption of fossil fuels has led to environmental problems such as global warming which result in using low carbon energy sources and renewable energy as a potential substitute for fossil fuels and nonrenewable energy. This study is going to investigate Environmental Kuznets curve (EKC) for 11 elected OPEC countries, from 1980 to 2013 by using nonlinear quadratic model. The consumption of renewable and nonrenewable energy are considered together in this model which has been carried out by PMG (Pooled Mean Group). According to the outcomes of the research the Environmental Kuznets curve hypothesis is confirmed in these selected countries and studied period. The coefficient of nonrenewable energy consumption is statistically significant at the 0.01 significance level. Its estimated coefficient is 0.67 and states a 1% increase in nonrenewable energy consumption which leads to CO2 emission rise by 0.67%. It indicates that overusing of nonrenewable energy and fossil fuels increases environmental and air pollution. Also, the coefficient of renewable energy consumption is -0.005 that it is not statistically significant.