Energy consumption, CO2 emissions, and development in the UAE

This study investigated the impact of energy consumption and CO2 emissions on the United Arab Emirates (UAE)'s economic and financial development. The vector autoregressive (VAR) model was applied. The results obtained in the study show that energy consumption and CO2 emissions had a long-run relationship with the economic and financial development indicators in the UAE. It was also found that there was a significant causal relationship between energy consumption and CO2 emissions on both economic and financial development indicator variables. The UAE is well known for its high economic and financial development owing to the fact that this country has achieved a fast economic growth in the last three decades. However, it is important that this country needs to increase its consumption of green energy to reduce CO2 emissions.