Score contribution per author:
α: calibrated so average coauthorship-adjusted count equals average raw count
The purpose of this article is to empirically investigate the impact of economic growth, oil consumption, financial development, industrialization and trade openness on carbon dioxide (CO<sub>2</sub>) emissions, particularly in relation to major oil-consuming developing economies. This study utilizes annual data from 1980 to 2012 on a panel of 18 developing countries. Our empirical analysis employs robust panel cointegration tests and a vector error correction model (VECM) framework. The empirical results of three panel cointegration models suggest that there is a significant long-run equilibrium relationship among economic growth, oil consumption, financial development, industrialization, trade openness and CO<sub>2</sub> emissions. Similarly, results from VECMs show that economic growth, oil consumption and industrialization have a short-run dynamic bidirectional feedback relationship with CO<sub>2</sub> emissions. Long-run (error-correction term) bidirectional causalities are found among CO<sub>2</sub> emissions, economic growth, oil consumption, financial development and trade openness. Our results confirm that economic growth and oil consumption have a significant impact on the CO<sub>2</sub> emissions in developing economies. Hence, the findings of this study have important policy implications for mitigating CO<sub>2</sub> emissions and offering sustainable economic development.