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Toward Environmental Sustainability: The Nexus between Agriculture, Renewable Energy, and Economic Growth in Mitigating CO2 Emissions in Somalia

Author

Listed:
  • Ali Yusuf Hassan

    (Faculty of Economics, SIMAD University, Mogadishu, Somalia)

  • Mohamed Abdukadir Mohamed

    (Faculty of Management Sciences, SIMAD University, Mogadishu, Somalia)

  • Mohamed Abdirahman Ahmed

    (Faculty of Management Sciences, SIMAD University, Mogadishu, Somalia)

  • Mahad Abdiwali Mohamed

    (Faculty of Management Sciences, SIMAD University, Mogadishu, Somalia)

  • Bashir Mohamed Osman

    (Faculty of Economics, SIMAD University, Mogadishu, Somalia)

Abstract

This research investigates the intricate relationships between agriculture, renewable energy, economic growth, and carbon dioxide (CO2) emissions in Somalia from 1991 to 2022. This study uses the Autoregressive Distributed Lag (ARDL) model and Granger causality tests to understand their impact on environmental sustainability. ARDL results reveal a negative role of agriculture and renewable energy on CO2 in the short and long term. The country's reliance on fossil fuels and biomass further intensifies CO2 emissions. While economic growth is essential for improving living standards, it positively correlates with CO2 emissions in the short and long term, emphasizing the challenge of decoupling economic development from environmental degradation. Domestic investment has a short-run relation only to CO2 emissions. In Granger causality tests, the results indicated that Agriculture and domestic investment have bidirectional causality to carbon dioxide emissions. On the other hand, renewable energy, economic growth, and domestic investment have unidirectional causality to Agriculture in Somalia, while domestic investment has bidirectional causality to renewable energy and economic growth. The study recommends implementing comprehensive and integrated approaches to prioritize sustainable development strategies, clean energy alternatives, and efficient agricultural practices. Promoting economic growth while also focusing on capacity-building and awareness campaigns is essential. Collaborating with the international community on climate change mitigation and sustainable development initiatives can further support Somalia's journey toward environmental sustainability.

Suggested Citation

  • Ali Yusuf Hassan & Mohamed Abdukadir Mohamed & Mohamed Abdirahman Ahmed & Mahad Abdiwali Mohamed & Bashir Mohamed Osman, 2024. "Toward Environmental Sustainability: The Nexus between Agriculture, Renewable Energy, and Economic Growth in Mitigating CO2 Emissions in Somalia," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 127-135, November.
    • Handle: RePEc:eco:journ2:2024-06-13
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    References listed on IDEAS

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    More about this item

    Keywords

    Renewable Energy; CO2 Emissions; Agriculture; Domestic Investment; Somalia;
    All these keywords.

    JEL classification:

    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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