Examining the Drivers of Environmental Sustainability in OPEC Countries: A Symbiotic Influence Index-STIRPAT-Kaya-EKC Approach

Within the Organization of the Petroleum Exporting Countries (OPEC), most countries are considered developed and developing, with the level of affluence activity on the rise leading to an increase in carbon dioxide emissions. To maintain a long-term sustainable economy, OPEC economies must take decisive action to find solutions for environmental mitigation. This study addresses the critical problem of environmental degradation in OPEC countries and explores strategies for achieving sustainable development. We investigate the impact of urban population, technology, economic growth, energy use, and a new Symbiotic Influence Index (SII) on CO2 emissions using the STIRPAT-Kaya-ECK model. Employing panel data for 13 OPEC countries from 1990 to 2022 and a Pooled Mean Group Autoregressive Distributed Lag (PMG-ARDL) methodology, we find that technology, urban population, and energy use are the primary drivers of environmental degradation. Notably, the interactive effect between population, affluence, and technology (SII) has significant potential to markedly reduce emissions in the long term. Within the Environmental Kuznets Curve (EKC) framework, our results indicate an inverse U-shaped relationship between economic affluence and environmental impact. This suggests that OPEC countries can achieve sustainable development by prioritizing technological innovation alongside managing urbanization and energy consumption. The findings of this study have important policy implications. By implementing integrated strategies that exploit the synergies among these factors, OPEC countries can combat environmental degradation and significantly reduce CO2 emissions in the long run. This would enable OPEC countries to preserve their economies and foster sustainable development.