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Carbon Dioxide Emission Spillover in the OPEC Member Countries

Document Type : Original Article

Author

Department of Economics, Faculty of Economics, Managment and Accounting, Yazd University, Yazd, Iran.

Abstract

Introduction: The industrial revolution not only started a new era of rapid economic growth in countries, but also brought modern phenomena such as global warming and climate change. One of the main aspects of the industrial revolution is the transformation of the world economy into fossil fuel-based economies. The use of fossil fuels continuously disrupts the level of carbon in the atmosphere and thus keeps the heat in the atmosphere. Due to the fact that OPEC member countries are oil sellers and have a relative advantage in fossil energy consumption, and energy consumption leads to the emission of carbon dioxide, so research in this field is necessary.
Materials and Method: In this research, carbon dioxide emission spillover in OPEC member countries was investigated using Dieblod - Yilmaz method. Then, using complex network theory, the spillover network in OPEC member countries was investigated.
Results: Carbon dioxide emission spillover from Angola to Iran 6.1%, United Arab Emirates 6%, Algeria 0.8%, Ecuador 1.9%, Iraq 1%, Kuwait 12%, Libya 5%, Nigeria 1.4%, Qatar is 1%, Saudi Arabia is 3.3% and Venezuela is 8.8%. Kuwait has the most spillover of carbon dioxide emission to Iran. The most spillover of carbon dioxide emissions from Iran is to Iraq and Angola. The value of Contribution to others, which means the spillover of carbon dioxide emissions, is the highest for the United Arab Emirates, which means that this country has the highest amount of carbon dioxide emissions among the OPEC member countries. A negative NET value indicates that the net spillover received is higher than the spillover transferred. A positive NET value indicates that the transmitted spillover is greater than the effect of the received spillover. The value of TCI (total connectedness index) in this research is 61.76%, which is a large number and shows that the spillover effect is strong in these countries. Finally, this spillover was investigated using complex network theory.
Discussion: According to the results of this study, the countries of Angola, Ecuador, Iran, Iraq, Libya and Venezuela are the senders of carbon dioxide emissions and the countries of Kuwait, Nigeria, Qatar, Saudi Arabia and Algeria are the receivers of carbon dioxide emissions. The country of Kuwait has the most spillover of carbon dioxide emission to Iran. The most spillover of carbon dioxide emissions from Iran is to Iraq and Angola. The TCI index is 61.76%, which shows that the spillover effect is strong in these countries. Qatar is the largest emitter of carbon dioxide emissions in the network of carbon dioxide emissions spillover in OPEC member countries. The country of Libya has the highest value of weighted indegree, and the sender of the spillover effect of carbon dioxide emissions, the country of Qatar has the highest value of weighted degree A complex network shows spillover relationships between edges. Qatar, Nigeria and Algeria countries are in one cluster and Ecuador and Venezuela countries are in one cluster and Iran, Iraq, Kuwait, Libya, Saudi Arabia and United Arab Emirates countries are in one cluster due to the spillover effect of carbon dioxide emissions. Degree, outdegree and indegree values are the same for all countries.

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Environment and Interdisciplinary Development
Volume 8, Issue 79
April 2023
Pages 14-25
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