The effects of fossil fuels consumption, CO2 emissions and crudeoil prices on economic growth

Growing demand for energy leads to economic growth and at the same time increases pollution and environmental degradation. Given the importance of economic growth and the environment, it is important for policymakers and economists to understand how energy variables and pollution affect the economic growth of countries. According to this, the present study investigated the effects of fossil fuel consumption, CO2 emissions and crude oil prices on economic growth during the period 2000-2019 in the Middle East and North Africa (MENA). For analysis, the Pooled mean group (PMG) and dynamic ordinary least square (DOLS) methods have been used and the countries studied in the study, in addition to the regional study of MENA, are divided into two subgroups, including countries exporting and importing crude oil. The results of PMG estimation show that a one percent increase in fossil fuel energy consumption, CO2 emissions and crude oil prices increased economic growth by 0.183, 0.013 and 0.058 percent for the crude oil exporting countries, respectively, while increasing by one percent. Crude oil prices in the short and long term will reduce the economic growth in the countries importing crude oil by 0.0260 and 0.409% respectively. The estimation results of DOLS method are similar to the results of PMG method and confirm it and indicate that the research has sufficient strength.