Abstract
This study aims to explain the relationship between income, trade, urbanization, and financial development towards the degree of carbon dioxide emissions. The main purpose of the research is an econometric model which tries to study the interaction between the level of carbon dioxide emissions with income, trade, urbanization, and financial development. Through a study based on a sample composed of the Gulf Cooperation Council (GCC) countries. We propose an empirical investigation based on the use of econometric modeling, cointegration techniques, and the Granger causality test and the VECM. By using a panel sample composed of the Gulf Cooperation Council (GCC) countries from the period 1995 to 2016 the results prove a positive and significant long term relationship between income, trade, urbanization, and financial development and CO2 emissions. Also, the results denote that a higher level of country income and urbanization generates a high level of CO2 emissions. Afterward, financial Development had a positive effect on CO2 emission level. And finally, trade openness influences negatively the CO2 emissions. (C) 2019 The Authors. Published by IASE.