Effect of Crude Oil Consume on Co2 Emissions in The OPEC Member Countries with Emphasis on Environmental Protection : A Generalized Method of Moment Approach

Document Type : Research Paper


Faculty of Economics and Social Sciences, Shahid Chamran University, Ahwaz, Iran


Air pollution is one of the major issues is the use of fossil fuels. Air pollution in different ways harmful effects of long-term, short-term, devastating and sometimes irreversible in humans, animals and plants life. Air pollution leads to increased heart disease, breathing, decreased vision, warming, acidification, etc. One of the problems of air pollution. Air pollution threatens the survival and health of organisms, including humans. After the industrial revolution because of advances in technology, industry, air pollution is increasing globally shared. A wave of public attention to environmental issues took place in the early seventies and was a major focus of this attention to industrial pollution. Although in some countries by means of investments and new technologies have made huge advances in the control of infections such as urban pollution, but these countries are facing serious challenges. Green Belt is an effective tool for reducing air pollution. Economy in various aspects of production and consumption of natural resources and the environment associated.In order to further expand production growth reflects the contradictions in economic growth and pollution. If the experience of many developed countries suggests that, if properly trodden path of economic growth, then there is not only a contradiction, but growth will improve the environmental situation. The environment and the issues it is one of the most important issues of this century. In the 1970s and 1980s with the rise in oil prices and the crisis of petroleum, natural resources and fossil fuels were considered and resulted in developed countries, in addition to the effects of growth determinants of economic growth, pay attention. On the one hand fossil-fuel, the main inputs and the use of these fuels, causing damage to the environment. The main objective when countries achieve higher economic growth and environmental pollution caused by economic activity, has become a controversial topic. Industrial development has led to greater use of fossil fuels. According to many ecologists, in the coming decades because of global greenhouse gas emissions, the planet will face severe environmental crises.
Ruttan (1993), three waves raised in relation to resources and the environment. The first wave came in the late 1940s and early 1950s, which was important as the relationship between resources and economic development. The second wave of the late 1960s and early 1970s and the scarcity of natural resources and pollution of the growth cycle, which leads to growth restriction, warned that resulted in sharp contrast to the demand for environmental services. With the argue of growth restriction in 1972 by the Club of Rome, Ruttan in the mid-1980s, the third wave of environmental quality and global change, food production, human health posed for generations. Theory of growth restriction, the reasons were discussed. Resource estimates were much higher than the current store and the advancement of technology and improved access to resources. Ecologists view natural system as assets that serve as reservoirs of energy and materials and have been included in market and see that environmental quality has not been included in market transaction and thus been undervalued and under prvide.
Materials& Methods
Crude oil consumption data from site Energy Information Administration (EIA) and data carbon dioxide emissions, trade, GDP has been taken from the World Bank. Crude oil consumption on the carbon dioxide emissions in the OPEC member countries following models from Shahbaz and others (2014) and Al-mulali and others(2014) have been used.
LCOit = β0i+ β1i LCOit-1 +β2i LOILit+β3iLTRADit+β4iLGDPit+Uit
In the above equation (LOIL) represents the log of crude oil per million liters, (LTRADE) logarithm of trade openness and GDP is real GDP constant prise2005 year. Because of its dynamics, there are lags in the independent variables and the object under study and contaminants from period to period, after remaining stable and effective over the next period, the model estimate based on dynamic estimators and generalized method of moments Used. Because of its dynamics, each of the other models, there is a failure that results in generalized method of moments can be reduced. After determining the method of estimating the parameters, results of model estimation using the software used Stata 12.
GMM estimator adapted to the validity of the assumption of no serial correlation error terms and tools that can be influenced by two tests stipulated by Arellano and Bond (1991), Arellano and belief (1995) and Blundell and Bond (1998) tested. The first is pre-determined restrictions Sargan test the validity of the test instruments. The latter statistic is that there is a second-order serial correlation in the errors perused the test the first differences. Failure to reject the null hypothesis both tests if there is no evidence of serial correlation and provides a valid tool. GMM estimator is consistent if second-order serial correlation in the error terms of first-order differential equation does not exist. Factors that may result in the use of GMM, include: a) the existence Regresses endogenous model of endogenous regresor in the model variable that is correlated with the error term. B) the correlation between the fixed effects such as geographic and demographic factors with explanatory variables. C) the availability of short period of time and a lot of school. the variance anisotropy as one of the factors the necessity of using GMM knew.
Discussion of Results & Conclusions
In recent years, greenhouse gases that cause air pollution and global climate change have been the focus of international attention. Estimates indicate a significant positive relationship between the consumption of crude oil equation, GDP and trade with emissions of carbon dioxide, respectively. Stuck variable logarithm of carbon emissions, a significant and positive impact on carbon emissions log shows that the last period with an increase in carbon emissions, increase carbon emissions for the next period. Carbon dioxide gas released in a period up to the end of the period is not fully absorbed and some of it remains in the environment for storage and influence the next period. Interruption LCOt-1 in the model according to research Rein and others (2014) and Manaji and others (2009). According to the results, a positive coefficient of the logarithm of GDP per capita, representing increasing levels of pollution emitted per unit increase in GDP per capita; in other words, economic growth is associated with the occurrence and severity of infection. Trade has been a positive effect on carbon emissions. According to various studies the effect of trade on pollution is ambiguous. According to Ang (2009) and Halicioglu(2008) the positive effect of openness on carbon dioxide emissions was approved. On the other hand Jalil and Mahmoud (2009) showed a negative relationship between these two variables. Increasing trade emissions can be effective in two ways. 1) through increased emissions from international shipping. 2) through the transfer of the importing country to the exporting country, causing pollution while increasing production in exporting countries, the possibility of increasing pollution in these countries followed. Trade because access to newer technology can reduce the pollution.


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