The　current　study　assesses　the　influence　of　energy　subsidies　as　an　independent　variable,　as　well　as,　economic　progress,　energy　usage,　and　trade　openness　as　control　variables　on　carbon　dioxide　emissions　in　Arab　countries　which　are　considered　both　top　energy　subsidy　providers　and　carbon　dioxide　(CO2)　emitters,　called　the　United　Arab　Emirates,　Saudi　Arabia,　Qatar,　Libya,　Kuwait,　Iraq,　Egypt,　Bahrain　and　Algeria　from　2010　to　2019　using　pooled　ordinary　least　squares　(OLS),　fixed　effects,　and　random　effects　approaches.　The　findings　signify　that　energy　subsides,　economic　progress,　and　energy　usage　are　all　significantly　and　positively　connected　with　environmental　deterioration　except　trade　openness　has　a　negative　influence.　The　pairwise　panel　causality　results　indicate　that　both　carbon　dioxide　and　economic　progress　cause　trade　openness.　It　may　put　pressure　on　policymakers　to　expedite　the　transition　to　low-carbon　energy　subsidies,　implement　carbon　taxes　on　consumer　goods　that　use　fossil　fuels　in　the　manufacturing　process,　and　promote　energy　efficiency.　Copyright　©　2024　Inderscience　Enterprises　Ltd.