Convergence of Factors Affecting Carbon Dioxide Emissions in MENA Region Countries, Dynamic Spatial Panel Approach

Sustainable development through minimizing the negative externalities on the environment is one of the important topics of economic research in recent decades. The emission of carbon dioxide resulting from the combustion of fossil fuels in diverse sectors of the economy, which include industries, power stations, transportation, and even the household sector, as one of the externalities of human activities today, is known to be the cause of environmental destruction. This paper analyzes elements which affect the emission of carbon dioxide in MENA region countries, during 2004 to 2020 by expanding the spatial Green Solow model and using the dynamic spatial panel model (DSM). The results of the estimates imply that population growth, urbanization growth, the share of industry in the GDP and the degree of trade openness have a positive and significant effect on carbon dioxide emissions. However, no significant relationship was discovered between the two variables of democracy and physical investment with carbon dioxide emissions in the goal nation. On the other hand, the spatial correlation among sections was confirmed. In addition, the convergence of the factors affecting carbon dioxide emissions was confirmed in the investigation period, which means that nations have tried to reduce carbon dioxide emissions in the duration.