The relationship between energy, pollution, economic growth and corruption: A Partial Least Squares Structural Equation Modeling (PLS-SEM) approach

At the end of 2010, the Middle East and North Africa (MENA) region confronted the Arab Spring that caused political instability and heightened economic risks. In fact, it became necessary to correlate in further research the corruption with energy consumption, economic growth and CO2 emissions. This study used time series data from 1996 – 2012 in the MENA region with the main aim to contribute to empirical literature by using the PLS-SEM approach. Results from the PLS-SEM show evidence of economic growth causing CO2 emissions. Second, energy consumption is positively and significantly related to economic growth and also may increase CO2 emissions. Thirdly, this research supports the view that corruption moderates economic growth and worsens the environmental quality in the MENA region. Finally, the use of the PLS-SEM reduces complexity and allows a better understanding of these relationships.