Impact of global warming on economic growth

Abstract

In this study, we analyze data from a subset of OPEC nations, spanning 1971–2002, to determine the correlations between carbon emissions, income, energy consumption, and total employment. The correlation between financial success and “energy use is our primary research interest. We use the autoregressive distributed lag (ARDL) method, and discover that the variables are cointegrated solely inside Saudi Arabia. It is concluded that employment and energy prices are the long-term driving factors for Saudi Arabia's revenue. Cointegration between income and energy prices does not exist in Indonesia, Algeria, Nigeria, or Venezuela. Second, we raise doubts about the Granger causation in the long term between carbon emissions, energy consumption, and GDP. According to our findings, lowering nations' emission levels does not require any of them to slow their economic development. Energy conservation might help Indonesia and Nigeria reduce emissions without slowing economic development in the long term.