Exploring the dynamic effect of economic growth on carbon dioxide emissions in Africa: evidence from panel PMG estimator (original) (raw)
Related papers
Sub-Saharan Africa, though not a 'big emitter,' is disproportionately affected by the enormous impact of climate change. With urbanization and economic growth in sub-Saharan Africa having undergone dramatic changes in recent decades, this study, with panel data from 37 sub-Saharan countries between the time period of 1995 to 2017, employs panel cointegration tests and pooled mean group ARDL (PMG-ARDL) techniques to empirically examine the impact of urbanization, economic growth, energy consumption, and industrialization on carbon emissions. Results confirm that (1) There is no significant impact of urbanization on carbon emissions in both the long-run and short-run. (2) energy consumption was found to have significantly impacted carbon emissions, thereby reducing environmental quality in the long-run and short-run. (3) Further findings revealed a significantly negative relationship between economic growth and carbon emissions as well as industrialization and carbon emissions...
Carbon dioxide emissions and economic growth: Panel data evidence from developing countries
In this paper we test the Environment Kuznet's Curve (EKC) hypothesis for 43 developing countries. We suggest examining the EKC hypothesis based on the short-and long-run income elasticities; that is, if the long-run income elasticity is smaller than the short-run income elasticity then it is evident that a country has reduced carbon dioxide emissions as its income has increased. Our empirical analysis based on individual countries suggests that Jordan, Iraq, Kuwait, Yemen, Qatar, the UAE, Argentina, Mexico, Venezuela, Algeria, Kenya, Nigeria, Congo, Ghana, and South Africa—approximately 35 per cent of the sample—carbon dioxide emissions have fallen over the long run; that is, as these economies have grown emissions have fallen since the long-run income elasticity is smaller than the short-run elasticity. We also examine the EKC hypothesis for panels of countries constructed on the basis of regional location using the panel cointegration and the panel long-run estimation techniques. We find that only for the Middle Eastern and South Asian panels, the income elasticity in the long run is smaller than the short run, implying that carbon dioxide emission has fallen with a rise in income.
European Scientific Journal, ESJ
This paper focuses on using time series data on real GDP, energy consumption, and CO2 emission to examine the effect of economic growth and energy consumption on CO2 emission for a panel of 23 African countries within the period 1980–2019. The study used Pedroni (1999) approach of panel cointegration analysis to test for existence of long-run cointegration relationship between the variables. Fixed effect model was used to test for the Environmental Kutznets Hypothesis, and income squared was included as an additional explanatory variable. The estimated empirical results for the panel of 23 African countries from fixed effect model indicates the evidence of EKC hypothesis. At the level of individual countries, there is large divergence. 13 countries show evidence of EKC, implying that CO2 emission has fallen over the long run. As income increases, the levels of environmental damage decreases in those countries. 10 countries show opposite relationship among the variables. Based on t...
Is the environmental Kuznets curve hypothesis a sound basis for environmental policy in Africa
Achieving economic development and environmental sustainability simultaneously is one of the most important development challenges for Africa today. The relationship between economic growth and environmental sustainability is founded on the environmental Kuznets curve (EKC). This paper examines the validity of the hypothesis and the driving factors of carbon dioxide (CO 2) emission in five African countries using the STIRPAT empirical model, panel cointegration and fully modified ordinary least squares. Unlike previous studies, economic development is disaggregated into agriculture and industrial economic development. The results show that there is no evidence of the validity of the hypothesis in Africa, regardless of whether economic development is driven by agriculture or industrialisation. Energy structure and energy intensity are the two major driving forces of CO 2 emissions in Africa. Population growth and urbanisation have negative relationship with CO 2 emissions. From our results, the EKC is not a sound basis for environmental policy in Africa; rather, environmental policy in Africa, specifically for CO 2 emissions mitigation, should focus on encouraging energy efficiency, enhancing the use of clean energy, incorporating the impact of population growth and harnessing the positive impacts of urbanisation.
CARBON EMISSIONS AND ECONOMIC GROWTH IN AFRICA: ARE THEY RELATED
Cogent Economics and Finance, 2020
The study the ARDL model, Mean Group (MG), and the Pooled Mean Group (PMG) model to examine the Environemtnal Kuznets Curve (EKC) hypothesis in 43 African countries pooled into 3 income groups from 1980–2016. The EKC hypothesis is accepted in only 21% of the sample but rejected in 70% of the countries in the total sample. This result shows that carbon emissions increase as economic growth increases in 79% of the countries while economic growth will lead to lower carbon emissions in only a few countries (21%). The study concludes that an increase in economic growth will induce higher emissions in most countries in Africa. These countries should take all possible policy actions such as the massive deployment of renewable energy, carbon tax policy, and the carbon emissions trading scheme to curtain growth in carbon emission.
2014
In this paper, we explore a variety of models attempting to explain the pollution-income relationship (PIR). There has been much literature addressing the notion of an environmental Kuznets curve (EKC). Many researchers find an EKC relationship for certain pollutants, while others do not find evidence of an EKC relationship. There is also literature formally critiquing the EKC. We employ cross-sectional, panel, and time-series analysis to add insight into the relationship between economic growth and environmental degradation, a research area that is far from consensual and that has practical implications. We ultimately find that the clearest case of an EKC effect in our study arises in the analysis of organic water pollution, while there is modest evidence suggesting an EKC effect with regard to CO2, NO, and methane. We also present ample evidence suggesting an anti-EKC effect for PM10. Our analysis causes us to question the existence of an EKC effect throughout the environment in general.
Modern Economy
The objective of this paper is to decompose the effects of economic growth on carbon emissions into scale, composition and technique effects in a panel of 23 Sub-Saharan African countries between 1996 and 2014. We combine static and dynamic panel estimation technique to quantile regression technique in order to bring out a detailed description of the relationship between carbon emissions and its determinants at different levels of carbon dioxide emissions. The results from static and dynamic estimations reveal that the expansion in the scale and the composition of the economy increase carbon emissions, while improvements in the technology are sufficient to reduce carbon emissions. However, quantile regressions indicate that these three effects are heterogeneously distributed across the dioxide carbon emission levels, and the scale effect holds only at the lower quantiles. The results also indicate that financial development, the size of population and the exports (as a percentage of GDP) have a positive effect on carbon emission, while imports (as a percentage of Gross Domestic Product) reduce it.
Environmental Science and Pollution Research, 2022
There are growing concerns about environmental degradation and economic expansions in West Africa. Although there are several growth-environmental studies in Africa, there is limited empirical research exploring West African countries' potential of benefiting from the environmental Kuznets curve (EKC) hypothesis, with the few studies on this subject reporting diverse results based on selected West African countries. To fill this gap, this study explored the relationship between economic growth and environmental degradation within the EKC framework using 16 West African countries sub-grouped into low-income countries (LICs) and lower-middle-income countries (LMICs) between 1990 and 2018. This study implemented second-generation panel econometric estimators that are robust to cross-sectional dependent and parameter heterogeneity. The empirical results revealed that the data is cross-sectionally dependent, heterogeneous, integrated of order one, 1(1), and cointegrated. Controlling for other environmental determinants, panel estimates from the Augmented Meant Group and Common Correlated Effect Mean Group estimators revealed that economic growth accelerates environmental degradation in West African countries, with a greater impact on LMICs, followed by LICs in West Africa. The results also showed that West African countries especially LMICs could benefit from the EKC hypothesis. On the other hand, growth-environmental degradation among LICs in West Africa shows a monotonous increasing relationship. We found strong evidence to support for feedback hypothesis between economic growth and environmental degradation in LMICs, LICs, and West Africa as a whole. Based on the findings, policy recommendations that consider both LMICs and LICs and West Africa as a whole were offered to policymakers.
Greenhouse gasses emission and economic growth nexus of sub-Saharan Africa
Scientific African, 2019
Notwithstanding the lesser contribution to global warming, sub-Saharan Africa (SSA) remained one of the most vulnerable to climate change due to low economic development, high dependence on natural resources for agricultural production and low technological advancement. There is also limited information on the nexus between economic growth and greenhouse gas emissions (GHG) in the region. Therefore, this study applied the Environmental Kuznets hypothesis to test the relationship between economic growth and GHG emissions in SSA and also test the effect of global GHG emission on economic growth of SSA. Using an aggregated panel data for the period of 1970 to 2012, a Vector Autoregressive and an Ordinary Least Square regression were estimated. From the result, although the relationship between economic growth and environmental quality was established in the short run, there are no clear turning point for the greenhouse gasses. Generally, there is a monotonic decreasing relationship between economic growth and environmental quality in the long-run. Interestingly, this study showed that global GHG emission levels have a long-run effect on the economic growth of SSA. We concluded that to ensure that economic growth leads to an improvement in environmental quality, there must be a global effort to introduce innovations and technologies that can lead to increase production with little GHG emissions. The study recommended that, SSA should consider carbon tax policies other than stringent GHG emission reduction initiatives or climate stabilisation policies that would negatively affect production in the region.
Impact of economic growth on carbon emissions on selected West African countries
Journal of Money and Business, 2021
Purpose – This study investigated the impact of economic growth on carbon emissions on selected West African countries between 1980 and 2019. Simon-Steinmann’s economic growth model provides the relevant theoretical foundation. The main objective of this study was to ascertain whether economic growth will impact carbon emissions. Design/methodology/approach – The study selected six-sample countries in West Africa and used secondary data obtained through the World Bank Group online database covering the period 1980–2019, employing panel econometric methods of statistical analysis. Findings –The outcome indicates that the independent variable showed a positively significant impact on the dependent variable for the pooled samples in the short-run, with significant cointegration. Research limitations/implications –The study concluded that economic growth significantly impacts the emissions of carbon, and a 1% rise in economic growth will result to 3.11121% unit rise in carbon emissions....