Investigating Carbon Emissions from Electricity Generation and GDP Nexus Using Maximum Entropy Bootstrap: Evidence from Oil-Producing Countries in the Middle East

The maximum entropy bootstrap for time series is applied in this study to investigate the nexus between carbon emissions from electricity generation and the gross domestic product, using a bivariate framework for eight Middle Eastern countries between 1995 and 2017. The sample under study includes oil-producing countries such as Bahrain, Iran, Iraq, Kuwait, Oman, Qatar, Saudi Arabia, and United Arab Emirates. As the electricity generation in these economies relies mainly on oil and gas, finding out the existence and direction of the relationship between the two considered variables has remarkable implications for policymakers and governments in these countries to achieve both higher economic growth and environmental protection. As expected, this nexus is validated for all countries in the sample but not in all models, time periods, and lags. Therefore, policymakers can set appropriate electricity conservation policies based on these varied empirical findings to boost economic growth with minimum environmental degradation.