The Fiscal and Monetary Policies and Environment in GCC Countries: Analysis of Territory and Consumption-Based CO2 Emissions

Sustainability

Anass Hamadelneel Adow¹  Muzafar Abbas²  Asim Iqbal³  Haider Mahmood⁴  Muntasir Murshed⁵  Maham Furqan⁶ 

[1] Department of Accounting, College of Business Administration, Prince Sattam Bin Abdulaziz University, Alkharj 11942, Saudi Arabia;Department of Business Administration, Community College, Prince Sattam Bin Abdulaziz University, Alkharj 11942, Saudi Arabia;Department of Economics, University of Education, Lahore 54000, Pakistan;Department of Finance, College of Business Administration, Prince Sattam Bin Abdulaziz University, Alkharj 11942, Saudi Arabia;School of Business and Economics, North South University, Dhaka 1229, Bangladesh;School of Public Policy, Oregon State University, Corvallis, OR 97331, USA;

关键词: fiscal policy;    monetary policy;    territory-based CO₂ emissions;    consumption-based CO₂ emissions;   

DOI  :  10.3390/su14031225

来源: DOAJ

【 摘 要 】

Expansionary monetary and fiscal policies are necessary for economic and environmental development. The present research studies the impact of monetary policy and fiscal policy on Territory-Based CO₂ (TBC) and Consumption-Based CO₂ (CBC) emissions in Gulf Cooperation Council (GCC) economies from 1990–2019. The cointegration is corroborated through various tests, and long-term relationships are found in both TBC and CBC models. Government expenditures have long-term positive effects on both TBC and CBC emissions and short-term positive effects on TBC emissions in the region. Money supply negatively affects the TBC and CBC emissions in the long run and positively affects TBC and CBC emissions in the short run. Hence, monetary policy needs a long time to have positive ecological effects in the GCC region. Moreover, fiscal policy in both the long and short run and monetary policy in the short run have scale effects in GCC economies. Therefore, we recommend reducing fiscal measures and encouraging monetary policy in the long run to have positive environmental outcomes in the region.

【 授权许可】

Unknown