Examining the non-linearity of energy-affluence-environment nexus: Global and Regional Perspectives

Since the energy crises of the 1970s, empirical examination of the nature of the energy-welfare-environment nexus has gained growing attention among economists, environmentalists, and policymakers alike. The non-linearity of such nexus is of great importance. This has substantial policy implications on sustainable development processes at the global, regional and national levels. Technological improvements, in such context, are often examined against possible diminishing trends of resource intensities, such as energy intensity, carbon intensity and water intensity and so on. In this study, we propose a novel dynamic moving-average econometric model with a view to examine the non-linear nature of energy-environment-welfare nexus and the sustainability of economic growth, at the global level and with special attention towards the MENA region and Oman.