Investigating the Impact of Globalization on CO2 Emissions in the MENA Region: Application of Spatial Regression

The CO2 emission is one of the components of global warming which has been more attention paid. Globalization as a phenomenon in the world has been affected the economic and social aspects of people. Therefore, given that globalization and the growing share of countries in the global trade network require extensive economic and productive activities, there is doubt about the impact of globalization on CO2 emissions. Considering the lack of consensus, the present study seeks to answer the question of whether globalization will increase or reduce CO2 emissions. To achieve the aim spatial panel data is used. The results of this study showed that globalization has a positive and significant effect on CO2 emissions in the MENA region. In other words, the growing trend of globalization has led to increasing CO2 emissions. Also, due to the spatial relationship between the MENA countries, it is suggested that countries begin to more cooperation and common policies in order to reduce the negative effects of economic activities on the environment.