Reproducibility package for Decarbonization In MENA Countries: An Empirical Analysis Of Policy Impacts

In this paper, we empirically examine the multiple impacts of alternative, major fiscal instruments on decarbonization in MENA countries and decarbonization pathways on decarbonization using a database covering 41 countries, including those from the MENA region. We use several methods to compare and contrast the findings and test their robustness. These new estimates contribute to the literature seeking to understand the pros and cons and effectiveness of various policy instruments in promoting decarbonization with particular focus on the MENA region. Some of the principal findings are the following. Oil subsidies among MENA oil producers strongly and positively impact higher CO2 emission. This effect seems to work through energy consumption path. Even after the consumption effect is controlled for, there remains a direct net effect of subsidies on CO2 likely arising from other sources such as manufacturing. Comparing three groups; all 41 countries, only MENA countries, and only MENA oil producers, the adverse effect of oil subsidies on CO2 emission matters only for MENA oil producers not the other two groups. Flaring contributes to CO2 emission for MENA oil producers. oil subsidies do not have a significant effect on short-run or long-run economic growth. Thus, reducing subsidies does not adversely impact economic growth. This is true for all countries for MENA and for MENA oil exporters.