The Impact of Final Energy Consumption in Transportation and Urbanisation on Environmental Quality in Algeria: An Econometric Study Using the ARDL Model for the Period 1990—2022
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Abstract
This study aims to measure the impact of both final energy consumption in transportation and urbanisation on the environmental quality in Algeria from 1990--2022. It describes an econometric model whose independent variables are final energy consumption in transportation (OILTRANS), urbanisation, and the growth rate of gross domestic product (GDP), and the dependent variable of environmental quality is expressed as the carbon dioxide emissions index (CO2E). Using an autoregressive bounds analysis method, the distributed lag (ARDL) procedure was applied, and the cointegration test was used. The study results confirmed that final energy consumption in transportation has a significant and positive long-term contribution to CO2 emissions in Algeria. The GDP per capita also has a significant positive effect on CO2 emissions. Furthermore, a significant direct correlation was found between CO2 emissions and urbanisation in the long run.
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