Convergence or Divergence in Per Capita CO2 Emissions Among OPEC Countries Focused on Regularity Quality and Government Effectiveness (GMM Approach)

The control and decreasing CO2 emissions are needed in global and regional agreements among countries. Because of the high share of fossil fuels in energy consumption, the OPEC countries emit more CO2. Understanding the distribution of CO2 emissions in this group of countries, have an important role in policy designing to control and decrease in CO2 emissions. The aim of this paper is to test convergence or divergence in per capita CO2 emissions among OPEC countries focused on the quality of institutions. In order to achieve this purpose, we used GMM by a green growth Solow model for panel data from OPEC countries over the period of 1996-2016. The results show the absolute and conditional convergence hypothesis is rejected. The technology has a negative and urban population and natural resources rent have a positive effect on per capita emissions. Also, the regularity quality and government effectiveness have a negative and a positive effect on per capita CO2 emissions, respectively. In accordance to divergence in per capita CO2 emissions, the authorities of OPEC countries should consider negotiations focused on quality of institutions to control and decrease in CO2 emissions.