IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2021-06-31.html
   My bibliography  Save this article

Energy Trade Amidst Sustainable Economic Growth in Regional Cooperation of West African States: Fresh Evidence from Panel CS-ARDL

Author

Listed:
  • Abubakar Mohammed Atiku

    (Faculty of Business and Management, Universiti Sultan Zainal Abidin (UnISZA), Terengaennu Malaysia,)

  • Suraya Ismail

    (Faculty of Business and Management, Universiti Sultan Zainal Abidin (UnISZA), Terengaennu Malaysia,)

  • Ali Umar Ahmad

    (Faculty of Maritime Study, Universiti Malaysia Terengganu, Malaysia)

Abstract

This study aims to examine the influence of energy trade, energy use, and carbon emission on economic growth for the period of 1970-2019, in regional cooperation of West African states. This study employed second generation techniques. The results revealed that energy trade increased economic growth in the long run. However, in short run energy trade reduced in economic growth. Besides, energy consumption impeded the economic growth in both short run and long run, while carbon emission increased the economic growth in both short run and long run. The energy crisis of 2014 decreased economic growth. Moreover, the result of interaction term of energy consumption and carbon emission showed positive influence on economic in both short run and long run. In addition, the results of causality showed uni-directional causal relationship from energy trade to economic growth. Policy recommendations can be made, in the sense that policies should be geared towards promoting renewable sustainable energy conservation policy that could possibly improve economic integration.

Suggested Citation

  • Abubakar Mohammed Atiku & Suraya Ismail & Ali Umar Ahmad, 2021. "Energy Trade Amidst Sustainable Economic Growth in Regional Cooperation of West African States: Fresh Evidence from Panel CS-ARDL," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 262-269.
    • Handle: RePEc:eco:journ2:2021-06-31
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/11598/6127
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/11598/6127
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shahbaz, Muhammad & Nasreen, Samia & Ling, Chong Hui & Sbia, Rashid, 2014. "Causality between trade openness and energy consumption: What causes what in high, middle and low income countries," Energy Policy, Elsevier, vol. 70(C), pages 126-143.
    2. Ibrahim Muhammad Adam & Aminu Hassan Jakada & Ali Umar Ahmad & Ismail Aliyu Danmaraya & Abdullahi Daiyabu Marmara & Abdul-azeez Abubakar, 2021. "Financial Instability and the State of Environmental Quality in Nigeria," International Journal of Business, Economics and Management, Conscientia Beam, vol. 8(5), pages 318-331.
    3. Opeyemi, Akinyemi & Uchenna, Efobi & Simplice, Asongu & Evans, Osabuohein, 2019. "Renewable energy, trade performance and the conditional role of finance and institutional capacity in sub-Sahara African countries," Energy Policy, Elsevier, vol. 132(C), pages 490-498.
    4. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    5. Oluwatosin Adeniyi & Adeolu O. Adewuyi, 2019. "Energy consumption and sectoral trade in selected West African economies," International Journal of Global Energy Issues, Inderscience Enterprises Ltd, vol. 42(1/2), pages 81-125.
    6. Hojat Parsa & Seyyedeh Zahra Sajjadi, 2017. "Exploring the Trade Openness, Energy Consumption and Economic Growth Relationship in Iran by Bayer and Hanck Combined Cointegration and Causality Analysis," Iranian Economic Review (IER), Faculty of Economics,University of Tehran.Tehran,Iran, vol. 21(4), pages 829-845, Autumn.
    7. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    8. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    9. Kyophilavong, Phouphet & Shahbaz, Muhammad & Anwar, Sabeen & Masood, Sameen, 2015. "The energy-growth nexus in Thailand: Does trade openness boost up energy consumption?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 46(C), pages 265-274.
    10. M. Hashem Pesaran & Aman Ullah & Takashi Yamagata, 2008. "A bias-adjusted LM test of error cross-section independence," Econometrics Journal, Royal Economic Society, vol. 11(1), pages 105-127, March.
    11. Pesaran, M. Hashem & Vanessa Smith, L. & Yamagata, Takashi, 2013. "Panel unit root tests in the presence of a multifactor error structure," Journal of Econometrics, Elsevier, vol. 175(2), pages 94-115.
    12. Zeren, Feyyaz & Akkuş, Hilmi Tunahan, 2020. "The relationship between renewable energy consumption and trade openness: New evidence from emerging economies," Renewable Energy, Elsevier, vol. 147(P1), pages 322-329.
    13. Luciano Lopez & Sylvain Weber, 2017. "Testing for Granger causality in panel data," Stata Journal, StataCorp LP, vol. 17(4), pages 972-984, December.
    14. Mensah, Johnson Herlich Roslee & Silva, Alex Takeo Yasumura Lima & Santos, Ivan Felipe Silva dos & Ribeiro, Natalia de Souza & Gbedjinou, Michael Jourdain & Nago, Victorien Gerardo & Tiago Filho, Gera, 2021. "Assessment of electricity generation from biogas in Benin from energy and economic viability perspectives," Renewable Energy, Elsevier, vol. 163(C), pages 613-624.
    15. Jibran Hussain & Sallahuddin Hassan, 2019. "Global Energy Transition and the Role of Energy Mix in Creating Energy Crisis in Pakistan," Pakistan Journal of Humanities and Social Sciences, International Research Alliance for Sustainable Development (iRASD), vol. 7(2), pages :219-232, June.
    16. Zameer, Hashim & Yasmeen, Humaira & Zafar, Muhammad Wasif & Waheed, Abdul & Sinha, Avik, 2020. "Analyzing the association between Innovation, Economic Growth, and Environment: Divulging the Importance of FDI and Trade Openness in India," MPRA Paper 101323, University Library of Munich, Germany, revised 2020.
    17. Paolo D. Farah & Elena Cima, 2013. "Energy Trade and the WTO: Implications for Renewable Energy and the OPEC Cartel," Journal of International Economic Law, Oxford University Press, vol. 16(3), pages 707-740, September.
    18. Rafindadi, Abdulkadir Abdulrashid, 2016. "Does the need for economic growth influence energy consumption and CO2 emissions in Nigeria? Evidence from the innovation accounting test," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 1209-1225.
    19. Eléazar Zerbo, 2017. "Energy consumption and economic growth in Sub-Saharan African countries: Further evidence," Economics Bulletin, AccessEcon, vol. 37(3), pages 1720-1744.
    20. Hoang Phong Le & Ho Hoang Gia Bao, 2020. "Renewable and Nonrenewable Energy Consumption, Government Expenditure, Institution Quality, Financial Development, Trade Openness, and Sustainable Development in Latin America and Caribbean Emerging M," International Journal of Energy Economics and Policy, Econjournals, vol. 10(1), pages 242-248.
    21. Begum, Rawshan Ara & Sohag, Kazi & Abdullah, Sharifah Mastura Syed & Jaafar, Mokhtar, 2015. "CO2 emissions, energy consumption, economic and population growth in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 594-601.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kabiru Kamalu & Wan Hakimah Binti Wan Ibrahim, 2023. "Conditional Effect of Environmental Degradation and Institutional Environment on Human Development in Developing Countries: Evidence from Method of the Moment-Quantile Regression with Fixed Effect," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 667-677, September.
    2. Abubakar Mohammed Atiku & Suraya Ismail & Farah Roslan & Ali Umar Ahmad, 2022. "The Effect of Electricity Distribution Loos, Electricity Power Consumption, Electricity Intensity on Energy Consumption in West Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 361-369, September.
    3. Suraya Ismail & Farah Roslan & Wan Anisah Endut & Noris Fatilla Ismail & Abubakar Mohammed Atiku & Ali Umar Ahmad, 2024. "Causal Link between Financial Globalisation Uncertainty, Economic Growth, Environmental Degradation and Energy Consumption in ASEAN+3 Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 1-5, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Muhammad Shahbaz & Syed Jawad Hussain Shahzad & Mantu Kumar Mahalik & Perry Sadorsky, 2018. "How strong is the causal relationship between globalization and energy consumption in developed economies? A country-specific time-series and panel analysis," Applied Economics, Taylor & Francis Journals, vol. 50(13), pages 1479-1494, March.
    2. Yuan, Shengjun & Musibau, Hammed Oluwaseyi & Genç, Sema Yılmaz & Shaheen, Riffat & Ameen, Anam & Tan, Zhixiong, 2021. "Digitalization of economy is the key factor behind fourth industrial revolution: How G7 countries are overcoming with the financing issues?," Technological Forecasting and Social Change, Elsevier, vol. 165(C).
    3. Ma, Qiang & Mentel, Grzegorz & Zhao, Xin & Salahodjaev, Raufhon & Kuldasheva, Zebo, 2022. "Natural resources tax volatility and economic performance: Evaluating the role of digital economy," Resources Policy, Elsevier, vol. 75(C).
    4. Haider Mahmood & Ateeq ur Rehman Irshad & Muhammad Tanveer, 2024. "Do innovation and renewable energy transition play their role in environmental sustainability in Western Europe?," Palgrave Communications, Palgrave Macmillan, vol. 11(1), pages 1-9, December.
    5. Hossain, Mohammad Razib & Rao, Amar & Sharma, Gagan Deep & Dev, Dhairya & Kharbanda, Aeshna, 2024. "Empowering energy transition: Green innovation, digital finance, and the path to sustainable prosperity through green finance initiatives," Energy Economics, Elsevier, vol. 136(C).
    6. Saidi, Hichem & El Montasser, Ghassen & Ajmi, Noomen, 2018. "Renewable Energy, Quality of Institutions and Economic Growth in MENA Countries: a Panel Cointegration Approach," MPRA Paper 84055, University Library of Munich, Germany.
    7. Fortune Ganda, 2021. "The influence of growth determinants on environmental quality in Sub-Saharan Africa states," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(5), pages 7117-7139, May.
    8. Wang, Chen & Xia, Mengli & Wang, Piao & Xu, Junjie, 2022. "Renewable energy output, energy efficiency and cleaner energy: Evidence from non-parametric approach for emerging seven economies," Renewable Energy, Elsevier, vol. 198(C), pages 91-99.
    9. Ferdi Akpilic & Caglayan Aslan, 2024. "The impact of real exchange rate uncertainty on exports by technology classification in emerging economies," International Economics and Economic Policy, Springer, vol. 21(4), pages 907-931, October.
    10. Li, Ying & Tariq, Muhammad & Khan, Saleem & Rjoub, Husam & Azhar, Aisha, 2022. "Natural resources rents, capital formation and economic performance: Evaluating the role of globalization," Resources Policy, Elsevier, vol. 78(C).
    11. Shreya Pal & Indranil Bandyopadhyay, 2022. "Impact of financial inclusion on economic growth, financial development, financial efficiency, financial stability, and profitability: an international evidence," SN Business & Economics, Springer, vol. 2(9), pages 1-29, September.
    12. Osarumwense Osabuohien-Irabor & Igor Mikhailovich Drapkin, 2022. "The Impact of Technological Innovation on Energy Consumption in OECD Economies: the role of Outward Foreign Direct Investment and International Trade Openness," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 317-333, July.
    13. Li, Xinqiang & Wang, Cheng, 2024. "Clean Energy's influence on the mineral resource market in the ASEAN region," Resources Policy, Elsevier, vol. 91(C).
    14. Hassan, Hassan & Tian, Shanwu & Safi, Adnan & Umar, Muhammad, 2024. "Climate commitments and financial moderation: A deep dive into renewable energy's influence on OECD carbon footprints," Economic Analysis and Policy, Elsevier, vol. 81(C), pages 1484-1495.
    15. Yang, Changjin & Qi, Huarui & Jia, Lijun & Wang, Yanjiao & Huang, Dan, 2024. "Impact of digital technologies and financial development on green growth: Role of mineral resources, institutional quality, and human development in South Asia," Resources Policy, Elsevier, vol. 90(C).
    16. Murshed, Muntasir & Saboori, Behnaz & Madaleno, Mara & Wang, Hong & Doğan, Buhari, 2022. "Exploring the nexuses between nuclear energy, renewable energy, and carbon dioxide emissions: The role of economic complexity in the G7 countries," Renewable Energy, Elsevier, vol. 190(C), pages 664-674.
    17. Li, Xuelin & Yang, Lin, 2023. "Natural resources, remittances and carbon emissions: A Dutch Disease perspective with remittances for South Asia," Resources Policy, Elsevier, vol. 85(PB).
    18. Ansari, Mohd Arshad, 2022. "Re-visiting the Environmental Kuznets curve for ASEAN: A comparison between ecological footprint and carbon dioxide emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    19. Muhammad Sadiq & Syed Tauseef Hassan & Irfan Khan & Mohammad Mafizur Rahman, 2024. "Policy uncertainty, renewable energy, corruption and CO2 emissions nexus in BRICS-1 countries: a panel CS-ARDL approach," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(8), pages 21595-21621, August.
    20. Chakraborty, Saptorshee Kanto & Mazzanti, Massimiliano, 2021. "Renewable electricity and economic growth relationship in the long run: Panel data econometric evidence from the OECD," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 330-341.

    More about this item

    Keywords

    Economic Growth; Energy Trade; Regional Cooperation of West African States; Second Generation Techniques;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • C01 - Mathematical and Quantitative Methods - - General - - - Econometrics

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eco:journ2:2021-06-31. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.