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Testing the relationships between energy consumption, CO2 emissions, and economic growth in 24 African countries: a panel ARDL approach

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Abstract

This study complements existing literature by examining the nexus between energy consumption (EC), CO2 emissions (CE), and economic growth (GDP; gross domestic product) in 24 African countries using a panel autoregressive distributed lag (ARDL) approach. The following findings are established. First, there is a long-run relationship between EC, CE, and GDP. Second, a long-term effect from CE to GDP and EC is apparent, with reciprocal paths. Third, the error correction mechanisms are consistently stable. However, in cases of disequilibrium, only EC can be significantly adjusted to its long-run relationship. Fourth, there is a long-run causality running from GDP and CE to EC. Fifth, we find causality running from either CE or both CE and EC to GDP, and inverse causal paths are observable. Causality from EC to GDP is not strong, which supports the conservative hypothesis. Sixth, the causal direction from EC to GDP remains unobservable in the short term. By contrast, the opposite path is observable. There are also no short-run causalities from GDP, or EC, or EC, and GDP to EC. Policy implications are discussed.

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Notes

  1. Also see Olusegun (2008) and Akinlo (2009).

  2. The line of inquiry steers clear of Ackah and Kizys (2015) which is closest to this study in at least a threefold manner, notably in data, methodology, and interpretation of findings. First, we are using 24 African countries whereas the Ackah and Kizys have used 12 countries. Second, we are adopting an autoregressive distributed lag (ARDL) estimation approach whereas the underlying authors have used fixed-effects, random-effects and generalized method of moments (GMM). Third, on the interpretation of findings, our estimation technique enables us to provide both short- and long-term effects, which is not the case withc the inferences from the findings of Ackah and Kizys.

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Acknowledgments

The authors are highly indebted to the editor and referees for constructive comments.

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Authors and Affiliations

  1. African Governance and Development Institute, P. Box 8413, Yaoundé, Cameroon

    Simplice Asongu

  2. Department of Quantitative Methods, École Supérieure de Commerce de Tunis, University of Manouba, 2010, Manouba, Tunisia

    Ghassen El Montasser

  3. Faculty of Economics and Management, University of Sfax, Street of Airport, km 4.5, LP 1088, Sfax, 3018, Tunisia

    Hassen Toumi

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  1. Simplice Asongu
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  2. Ghassen El Montasser
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  3. Hassen Toumi
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Correspondence to Simplice Asongu.

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Responsible editor: Philippe Garrigues

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Asongu, S., El Montasser, G. & Toumi, H. Testing the relationships between energy consumption, CO2 emissions, and economic growth in 24 African countries: a panel ARDL approach. Environ Sci Pollut Res 23, 6563–6573 (2016). https://doi.org/10.1007/s11356-015-5883-7

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  • DOI: https://doi.org/10.1007/s11356-015-5883-7

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