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Environmental implications of increased US oil production and liberal growth agenda in post -Paris Agreement era.

Accepted version
Peer-reviewed

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Type

Article

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Authors

Shahbaz, Muhammad 
Kablan, Sandrine 
Hammoudeh, Shawkat 
Nasir, Muhammad Ali 

Abstract

Contextualising on the internationally low oil prices era and historically high oil production in USA and refusal to honour the commitments under Paris Agreement (COP: 21), this study investigates the role of education, oil prices and natural resources on energy demand and CO2 emissions in the USA for the period of 1976-2016. In so doing, we employed a bounds testing approach to cointegration accounting for structural breaks in the series. Key findings suggest the presence of a long-run association between underlying variables. The abundance of natural resources and economic growth of the US economy seem to weigh on environmental quality by increasing energy consumption and carbon emissions. Oil prices show a negative association with energy consumption as well as carbon emissions suggesting that a low oil prices regime can lead to an increase in carbon emissions and energy consumption. Interestingly, education seems to play an important role by reducing energy consumption and carbon emissions, resultantly improving the US environmental quality. Our findings have profound environmental implications in terms of efforts to tackle climate change and meeting the Paris agreement (COP: 21) ambitions with reality and USA policy stance.

Description

Keywords

21, COP, Education, Energy and emissions, Natural resources, Oil prices, Carbon Dioxide, Climate Change, Economic Development, Paris, Policy

Journal Title

J Environ Manage

Conference Name

Journal ISSN

0301-4797
1095-8630

Volume Title

271

Publisher

Elsevier BV