Do demographic factors affect the environment? Empirical evidence from the Middle East and North African countries

Every country intends to enhance national production by achieving sustainable development. The purpose of this study is to examine whether there exists any long-run association among environmental deterioration measured by territorial emissions in CO2, demographic factors (total population, population density, and urban population) and some other variables, namely, energy use, per capita income, energy intensity, and industrial value added for the 16 countries from the Middle East and North African (MENA) over 1990-2018. We implemented the generalized method of moments (GMM), fully modified ordinary least square (FMOLS), robust least square estimators, and panel Granger causality techniques for estimation. The empirical estimates reveal that there exists a long run cointegration among the series. Results also exhibit that energy use, per capita income, energy intensity, industrial value added, population density, total population, and urban population have positive effects on CO2 emissions. Furthermore, in each panel, there is bi-directional causality between population density and CO2 emissions, total population and CO2 emissions, and urban population and CO2 emissions. These findings suggest that the policymakers need not exclusively to focus on the transformation of rural labor from an agricultural-based model to urban regions with powerful, dominant industry and services sectors but also related to the changing of rural establishments into urban spaces is required. These changes in demographics involve changes in the demand for additional transportation services, food, shelter, clothing, and other necessities.