Academia Open
Vol. 11 No. 1 (2026): June

Measuring and Analyzing the Relationship Between Global Warming and Economic Growth Using the Vector Autoregression (VAR) Model: Iraq as a Case Study for the Period (1990–2016)

Alaa Nouri Hussein (University of Babylon, College of Administration and Economics, Department of Economics)



Article Info

Publish Date
03 Mar 2026

Abstract

General Background: Global warming driven by carbon dioxide emissions has become a central challenge to economic systems, particularly in developing and oil-dependent countries. Specific Background: Iraq, as a rentier economy heavily reliant on oil production, faces rising CO₂ emissions alongside fluctuating gross domestic product growth, especially during the period 1980–2016 marked by wars, sanctions, and structural instability. Knowledge Gap: Despite increasing environmental deterioration, limited econometric evidence exists on the dynamic relationship between global warming and economic growth in Iraq. Aims: This study analyzes the short-run and long-run interactions between CO₂ emissions and GDP using annual World Bank data and the Vector Autoregression model. Results: Unit root tests confirm stationarity at first difference, while the Engle–Granger test indicates no long-term cointegration between the variables. VAR estimates reveal weak but positive short-run interactions, where economic growth slightly increases emissions and past emissions strongly determine current emission levels, with model explanatory power reaching 96% and 89% respectively. Novelty: The study provides a structured econometric assessment of environmental and economic dynamics in Iraq using VAR modeling for the full 1980–2016 period. Implications: Findings highlight the short-term mutual dynamics between oil-driven growth and emissions, underscoring the need for diversification strategies and climate-focused economic policies in Iraq. Highlights:• No Long-Run Equilibrium Detected Between Co₂ Emissions and GDP.• Short-Term Dynamics Show Weak Reciprocal Interactions.• Past Emission Levels Strongly Determine Current Emission Trends. Keywords: Global Warming, Carbon Dioxide Emissions, Economic Growth, Vector Autoregression, Iraq

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Journal Info

Abbrev

acopen

Publisher

Subject

Medicine & Pharmacology Public Health

Description

Academia Open is published by Universitas Muhammadiyah Sidoarjo published 2 (two) issues per year (June and December). This journal provides immediate open access to its content on the principle that making research freely available to the public supports a greater global exchange of knowledge. This ...