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Almost 85% of GHGs emissions in the region are caused by energy consumption and production. These conditions have created a severe challenge for the sustainable development of the region. The economic development sustained by consuming massive natural resource reserves, such as oil and gas, has sparked industrialization, urbanization, and unsustainable agriculture activities in the region (Magazzino & Cerulli, 2019).
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The domestic abundance of gas and oil resources, high energy consumption, and energy exports to meet global energy demands increase this region's significance and strategic importance. The MENA economies are a significant source of international economic prosperity because of the region's extensive petroleum and natural gas reserves (Kiprop, 2019). The MENA countries have abundant natural resources and hold almost 6% of the global population, approximately 60% of the world's oil resources, and about 45% of the world's gas reserves. Understanding the causes of growing CO 2 emissions and choosing appropriate mitigation strategies is critical for all countries however, this subject is crucial for the MENA (Middle East North African) region due to its specific characteristics. Many environmental studies have highlighted the need to reduce GHGs, mainly carbon dioxide (CO 2) emissions, as CO 2 emissions make up the leading share of GHGs (Ahmed et al. Climate change is linked to energy consumption and resultant greenhouse gas emissions (GHGs) (Nathaniel & Iheonu, 2019). Humanity has faced the major challenge of climate change since the turn of this century. The paper provides novel empirical evidence and policy recommendations for sustainable development goals. The unidirectional link indicates natural resources and economic globalization create trade openness.
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In contrast, trade openness, urbanization, and economic growth significantly deteriorate environmental quality. Likewise, economic globalization also mitigates emissions levels in the MENA countries. The findings show that natural resource abundance significantly improves environmental quality. We apply second-generation panel cointegration techniques along with continuously updated fully modified (Cup-FM) and continuously updated bias-corrected (Cup-BC) techniques. This paper examines the effects of natural resource abundance and economic globalization on environmental quality by considering trade openness, urbanization, and economic growth from the year 1980 to 2018. Despite the status of being a hotspot for mineral resource richness, there is limited research on the effect of natural resources and economic globalization on the environmental degradation of the MENA countries. Economic globalization has put the MENA countries in the spotlight for the developed world. The Middle East and North Africa (MENA) economies are rich in mineral resources. These challenges include depletion of natural resources, globalization challenges, and environmental degradation. The high pace of economic growth has posed many challenges.