Economic Growth — Climate Change Nexus in GCC States: A Panel ARDL Approach

The current study examines the relationship between economic growth and climate change in Gulf Cooperation Council (GCC) nations, with a particular emphasis on the effect of economic growth on regional carbon emissions. A Panel Autoregressive Distributed Lag (ARDL) model is employed in the study to examine the short-run and long-run relationships between economic growth and climate change variables. According to the study's findings, there is a statistically significant relationship between the GDP growth dimension and several variables, such as carbon emissions, yearly average temperature, annual average precipitation, population density, and annual crude oil production. The study concludes that there is a need for GCC authorities to consider the environmental consequences of economic expansion and take actions to prevent the negative effects of climate change. The paper underlines the necessity of international cooperation in addressing climate change and promoting renewable energy in the GCC countries.