A semi-parametric panel data analysis on the urbanisation-carbon emissions nexus for the MENA countries

This study seeks to examine the impacts of urbanisation on carbon emissions through the investigation of the existence of an environmental Kuznets curve (EKC). Within the Stochastic Impacts by Regression on Population, Affluence and Technology (STIRPAT) framework, this is the first study in the MENA region to explore the urbanisation and carbon emissions nexus; using panel data together with a semi-parametric panel fixed effects regression. The data set refers to a panel of 20 countries in the MENA region spanning the period 1980-2014. According to the results; there is little evidence to support an inverted-U shaped relationship between urbanisation and carbon emissions in the region. More specifically, it was found in the region and with the continuation of the urbanisation process, carbon emissions per capita decreased. In addition, the results suggest that energy use and economic growth are the main sources of carbon emissions in the region. The results imply that policies to reduce carbon emissions in the countries with relatively higher carbon emissions, should concentrate more on energy use and the pattern of economic growth and not the urbanisation issue.