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Fostering a Sustainable Future in Somalia: Examining the Effects of Industrialization, Energy Consumption, and Urbanization on Environmental Sustainability

Author

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  • Abdikafi Hassan Abdi

    (Institute of Climate and Environment, SIMAD University, Mogadishu, Somalia; & Faculty of Economics, SIMAD University, Mogadishu, Somalia)

  • Mohamed Ahmed Hashi

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

Abstract

While existing research has extensively explored the individual impacts of energy consumption, industrialization, and urbanization on environmental sustainability, there remains a notable gap in understanding the synergistic effects of these factors within the context of rapidly developing regions, such as Somalia. Therefore, this study explores the impacts of energy consumption, industrialization, and urbanization on environmental sustainability in Somalia from 1990 to 2020. The long-run linkage among the variables of the study was confirmed using the bounds-testing approach. The findings from the ARDL model indicate that economic growth, energy consumption, and trade openness significantly exacerbate environmental pollution in Somalia in the short- and long-run. Conversely, while industrialization and urbanization reduce environmental pollution both the short- and long-run, urbanization does not demonstrate a statistically significant impact. The long-run findings of the study were validated using the DOLS and FMOLS approaches. The Granger causality analysis reveals unidirectional causalities from environmental pollution to GDP per capita, industrialization, and trade openness, as well as from energy consumption to environmental degradation. However, no causal linkage is detected between urbanization and environmental pollution within Somalia. Based on the results of the study, we propose the promotion of renewable energy sources, green industrialization strategies, urban planning and sustainable development, and enhanced monitoring and regulation to effectively address environmental degradation.

Suggested Citation

  • Abdikafi Hassan Abdi & Mohamed Ahmed Hashi, 2024. "Fostering a Sustainable Future in Somalia: Examining the Effects of Industrialization, Energy Consumption, and Urbanization on Environmental Sustainability," International Journal of Energy Economics and Policy, Econjournals, vol. 14(6), pages 384-394, November.
    • Handle: RePEc:eco:journ2:2024-06-37
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    References listed on IDEAS

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    More about this item

    Keywords

    Energy Consumption; Industrialization; Urbanization; Economic Growth; Trade Openness; Environmental Pollution;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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