Investigating the Dynamic Relationship between Economic Growth, Energy Consumption, and CO2 Emissions in Lebanon

This research paper aims to empirically examine the causal relationship among economic growth, energy consumption, and CO2 emissions in Lebanon. The analysis utilizes annual time series data spanning from 1970 to 2022 and employs a trivariate causality model to explore the interdependencies and causal linkages between these variables. Through a systematic and rigorous investigation, this study seeks to provide valuable insights into the complex dynamics and interactions among economic growth, energy consumption, and CO2 emissions within the context of Lebanon. The findings reveal a robust unidirectional causal relationship, emphasizing the significant role of energy consumption in driving economic growth. These findings underscore the necessity for the implementation of effective energy policies that harness the potential of energy as a catalyst for sustainable development. Moreover, the study investigates the bidirectional relationship between GDP and CO2 emissions, highlighting the importance of integrating renewable energy sources within industries and manufacturing sectors to stimulate GDP growth while simultaneously curbing CO2 emissions. This transformative approach aims to foster a resilient and environmentally friendly economy, facilitating sustainable progress and development in Lebanon.