Advertisement

Environmental Science and Pollution Research

, Volume 25, Issue 15, pp 15057–15067 | Cite as

Impact of economic growth, nonrenewable and renewable energy consumption, and urbanization on carbon emissions in Sub-Saharan Africa

  • Imran HanifEmail author
Research Article

Abstract

The present study explores the impact of economic growth; urban expansion; and consumption of fossil fuels, solid fuels, and renewable energy on environmental degradation in developing economies of Sub-Saharan Africa. To demonstrate its findings in detail, the study adopts a system generalized method of moment (GMM) on a panel of 34 emerging economies for the period from 1995 to 2015. The results describe that the consumption of fossil and solid fuels for cooking and expansion of urban areas are significantly contributing to carbon dioxide emissions, on one end, and stimulating air pollution, on the other. The results also exhibit an inverted U-shape relationship between per capita economic growth and carbon emissions. This relation confirms the existence of an environmental Kuznets curve (EKC) in middle- and low-income economies of Sub-Saharan Africa. Furthermore, the findings reveal that the use of renewable energy alternatives improves air quality by controlling carbon emissions and lowering the direct interaction of households with toxic gases. Thus, the use of renewable energy alternatives helps the economies to achieve sustainable development targets.

Keywords

Carbon emissions Developing economies Economic growth Fossil fuels Renewable energy Solid fuels 

References

  1. Ahmed K, Long W (2012) Environmental Kuznets curve and Pakistan: an empirical analysis. Procedia Economics and Finance 1:4–13CrossRefGoogle Scholar
  2. Ali W, Abdullah A, Azam M (2016) Re-visiting the environmental Kuznets curve hypothesis for Malaysia: fresh evidence from ARDL bounds testing approach. Renewable and sustainable energy reviews Google Scholar
  3. Al-Mulali U, Sab CNBC (2012) The impact of energy consumption and CO 2 emission on the economic growth and financial development in the Sub Saharan African countries. Energy 39(1):180–186CrossRefGoogle Scholar
  4. Ang JB (2007) CO2 emissions, energy consumption, and output in France. Energy Policy 35(10):4772–4778CrossRefGoogle Scholar
  5. Apergis N, Payne JE (2010) Renewable energy consumption and growth in Eurasia. Energy Econ 32(6):1392–1397CrossRefGoogle Scholar
  6. Arellano M, Bond S (1988) Dynamic panel data estimation using PPD: a guide for users. Institute for Fiscal Studies, LondonGoogle Scholar
  7. Arellano M, Bover O (1995) Another look at the instrumental variable estimation of error-components models. J Econ 68(1):29–51CrossRefGoogle Scholar
  8. Arouri MEH, Youssef AB, M'henni H, Rault C (2012) Energy consumption, economic growth and CO 2 emissions in Middle East and North African countries. Energy Policy 45:342–349CrossRefGoogle Scholar
  9. Awad A, Hersi MHM (2017) Climate changes in Africa: does economic growth matter? A semi-parametric approach. Int J Energy Econ Policy, 7(1)Google Scholar
  10. Bailis R, Ezzati M, Kammen DM (2005) Mortality and greenhouse gas impacts of biomass and petroleum energy futures in Africa. Science 308(5718):98–103CrossRefGoogle Scholar
  11. Bekhet HA, Harun NHB (2012) Energy essential in the industrial manufacturing in Malaysia. Int J Econ Financ 4(1):129Google Scholar
  12. Bilgili F, Koçak E, Bulut U, Sualp MN (2016) How did the US economy react to shale gas production revolution? An advanced time series approach. Energy 116:963–977CrossRefGoogle Scholar
  13. Blundell R, Bond S (1998) Initial conditions and moment restrictions in dynamic panel data models. J Econ 87(1):115–143CrossRefGoogle Scholar
  14. Breusch TS, Pagan AR (1979) A simple test for heteroscedasticity and random coefficient variation. Econometrica Je Econ Soc 47(5):1287–1294CrossRefGoogle Scholar
  15. Chang CC (2010) A multivariate causality test of carbon dioxide emissions, energy consumption and economic growth in China. Appl Energy 87:3533–3537CrossRefGoogle Scholar
  16. Cole MA (2004) Trade, the pollution haven hypothesis and the environmental Kuznets curve: examining the linkages. Ecol Econ 48(1):71–81CrossRefGoogle Scholar
  17. Collier P, Conway G, Venables T (2008) Climate change and Africa. Oxf Rev Econ Policy 24(2):337–353CrossRefGoogle Scholar
  18. Destek MA, Aslan A (2017) Renewable and non-renewable energy consumption and economic growth in emerging economies: evidence from bootstrap panel causality. Renew Energy 111:757–763CrossRefGoogle Scholar
  19. Dinda S, Coondoo D, Pal M (2000) Air quality and economic growth: an empirical study. Ecol Econ 34(3):409–423CrossRefGoogle Scholar
  20. Dogan E, Turkekul B (2016) CO2 emissions, real output, energy consumption, trade, urbanization and financial development: testing the EKC hypothesis for the USA. Environ Sci Pollut Res 23(2):1203–1213CrossRefGoogle Scholar
  21. Durbin J (1954) Errors in variables. Rev Int Stat Inst 22(1/3):23–32CrossRefGoogle Scholar
  22. Esso LJ, Keho Y (2016) Energy consumption, economic growth and carbon emissions: cointegration and causality evidence from selected African countries. Energy 114:492–497CrossRefGoogle Scholar
  23. Fodha M, Zaghdoud O (2010) Economic growth and pollutant emissions in Tunisia: an empirical analysis of the environmental Kuznets curve. Energy Policy 38(2):1150–1156CrossRefGoogle Scholar
  24. Halicioglu F (2011) A dynamic econometric study of income, energy and exports in Turkey. Energy 36(5):3348–3354CrossRefGoogle Scholar
  25. Hanif I (2017) Economics-energy-environment Nexus in Latin America and the Caribbean. Energy 141:170–178CrossRefGoogle Scholar
  26. Hanif I, Gago-de-Santos P (2017) The importance of population control and macroeconomic stability to reducing environmental degradation: an empirical test of the environmental Kuznets curve for developing countries. Environ Dev 23(3):1–9CrossRefGoogle Scholar
  27. Hausman JA (1978) Specification tests in econometrics. Econometrica J Econ Soc 46(6):1251–1271CrossRefGoogle Scholar
  28. Kais S, Sami H (2016) An econometric study of the impact of economic growth and energy use on carbon emissions: panel data evidence from fifty eight countries. Renew Sust Energ Rev 59:1101–1110CrossRefGoogle Scholar
  29. Kasman A, Duman YS (2015) CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: a panel data analysis. Econ Model 44:97–103CrossRefGoogle Scholar
  30. Kivyiro P, Arminen H (2014) Carbon dioxide emissions, energy consumption, economic growth, and foreign direct investment: causality analysis for Sub-Saharan Africa. Energy 74:595–606CrossRefGoogle Scholar
  31. Li J, Song H, Geng D (2008) Causality relationship between coal consumption and GDP: difference of major OECD and non-OECD countries. Appl Energy 85:421–429CrossRefGoogle Scholar
  32. Liu J, Dietz T, Carpenter SR, Alberti M, Folke C, Moran E, Pell AN, Deadman P, Kratz T, Lubchenco J, Ostrom E (2007) Complexity of coupled human and natural systems. Science 317(5844):1513–1516CrossRefGoogle Scholar
  33. Menyah K, Wolde-Rufael Y (2010) Energy consumption, pollutant emissions and economic growth in South Africa. Energy Econ 32(6):1374–1382CrossRefGoogle Scholar
  34. Narayan PK, Smyth R (2005) Electricity consumption, employment and real income in Australia evidence from multivariate granger causality tests. Energy policy 33(9):1109–1116CrossRefGoogle Scholar
  35. Panayotou T (1997) Demystifying the environmental Kuznets curve: turning a black box into a policy tool. Environ Dev Econ 2(4):465–484CrossRefGoogle Scholar
  36. Rafiq S, Salim R, Nielsen I (2016) Urbanization, openness, emissions, and energy intensity: a study of increasingly urbanized emerging economies. Energy Econ 56:20–28CrossRefGoogle Scholar
  37. Sadorsky P (2012) Energy consumption, output and trade in South America. Energy Econ 34(2):476–488CrossRefGoogle Scholar
  38. Saidi K, Hammami S (2015) The impact of CO2 emissions and economic growth on energy consumption in 58 countries. Energy Reports 1:62–70CrossRefGoogle Scholar
  39. Sebri M, Ben-Salha O (2014) On the causal dynamics between economic growth, renewable energy consumption, CO 2 emissions and trade openness: fresh evidence from BRICS countries. Renew Sust Energ Rev 39:14–23CrossRefGoogle Scholar
  40. Selden TM, Song D (1995) Neoclassical growth, the J curve for abatement, and the inverted U curve for pollution. J Environ Econ Manag 29(2):162–168CrossRefGoogle Scholar
  41. Shafik N, Bandyopadhyay S (1992) Economic growth and environmental quality: time-series and cross-country evidence (Vol. 904). World Bank PublicationsGoogle Scholar
  42. Shahbaz M, Tiwari AK, Nasir M (2013) The effects of financial development, economic growth, coal consumption and trade openness on CO 2 emissions in South Africa. Energy Policy 61:1452–1459CrossRefGoogle Scholar
  43. Solarin SA, Al-Mulali U, Musah I, Ozturk I (2017) Investigating the pollution haven hypothesis in Ghana: an empirical investigation. Energy 124:706–719CrossRefGoogle Scholar
  44. Sulemana I, James HS, Rikoon JS (2017) Environmental Kuznets curves for air pollution in African and developed countries: exploring turning point incomes and the role of democracy. J Environ Econ Policy 6(2):134–152CrossRefGoogle Scholar
  45. Tamazian A, Chousa JP, Vadlamannati KC (2009) Does higher economic and financial development lead to environmental degradation: evidence from BRIC countries. Energy Policy 37(1):246–253CrossRefGoogle Scholar
  46. UN-HABITAT (2010) State of the World’s cities report. UN-HABITAT, NairobiCrossRefGoogle Scholar
  47. Wang SS, Zhou DQ, Zhou P, Wang QW (2011) CO2 emissions, energy consumption and economic growth in China: a panel data analysis. Energy Policy 39:4870–4875CrossRefGoogle Scholar
  48. Wang S, Li Q, Fang C, Zhou C (2016) The relationship between economic growth, energy consumption, and CO2 emissions: empirical evidence from China. Sci Total Environ 542:360–371CrossRefGoogle Scholar
  49. Windmeijer F (2005) A finite sample correction for the variance of linear efficient two-step GMM estimators. J Econ 126(1):25–51CrossRefGoogle Scholar
  50. Wolde-Rufael Y (2005) Energy demand and economic growth: the African experience. J Policy Model 27(8):891–903CrossRefGoogle Scholar
  51. World Health Organization (2016) Household air pollution and Health, fact sheet number 292. http://www.who.int/mediacentre/factsheets/fs292/en/
  52. Wu DM (1973) Alternative tests of independence between stochastic regressors and disturbances. Econometrica J Econ Soc 41(4):733–750CrossRefGoogle Scholar
  53. Yang G, Wang H, Zhou J, Liu X (2012) Analyzing and predicting the economic growth, energy consumption and CO2 emissions in shanghai. Energy Environ Res 2(2):83CrossRefGoogle Scholar
  54. Yildirim E, Saraç Ş, Aslan A (2012) Energy consumption and economic growth in the USA: evidence from renewable energy. Renew Sust Energ Rev 16(9):6770–6774CrossRefGoogle Scholar
  55. Zeb R, Salar L, Awan U, Zaman K, Shahbaz M (2014) Causal links between renewable energy, environmental degradation and economic growth in selected SAARC countries: progress towards green economy. Renew Energy 71:123–132CrossRefGoogle Scholar
  56. Zhang L, Gao J (2016) Exploring the effects of international tourism on China's economic growth, energy consumption and environmental pollution: evidence from a regional panel analysis. Renew Sust Energ Rev 53:225–234CrossRefGoogle Scholar

Copyright information

© Springer-Verlag GmbH Germany, part of Springer Nature 2018

Authors and Affiliations

  1. 1.Department of EconomicsNUR International UniversityLahorePakistan

Personalised recommendations