Spatial Panel Regression Model for Energy Consumption, Environmental Degradation and Economic Growth in Oil Importing and Exporting Countries

Sayed Kushairi Sayed Nordin, Siok Kun Sek

This study used spatial panel regression (SEM, SAR and SDM) and non spatial panel regression (pooled OLS) to examine the relationship between energy consumption, environmental degradation and economic growth in oil importing and exporting countries for a data set from 2004 to 2013. The empirical results showed that spatial panel models were more appropriate than non spatial panel models for both groups of countries. Furthermore, it was found that all the variables were related, and energy consumption was a positive significant factor to GDP and CO2 emissions. However, the two groups of countries showed contrasting GDP contribution to CO2 emissions. The results were consistent with most past studies and revealed useful information about the spatial interaction effect in the estimated models. This provided a better understanding about the interrelationship among the variables in different groups of countries to achieve sustainable development.

Volume 11 | 12-Special Issue

Pages: 258-266