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The impact of energy consumption and CO2 emission on the economic growth and financial development in the Sub Saharan African countries

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  • Al-mulali, Usama
  • Binti Che Sab, Che Normee

Abstract

This study investigated the impact of energy consumption and CO2 emission on GDP (gross domestic product) growth and the financial development in thirty Sub Saharan African Countries. The panel model was used in this study from the period 1980 to 2008. The results showed that energy consumption had played an important role to increase both economic growth and the financial development in the investigated economies but with the consequence of high po llution. This study recommended that these countries should increase energy productivity by increasing energy efficiency, implementation of energy savings projects, energy conservation, and energy infrastructure outsourcing to achieve its financial development and GDP growth and to increase their investment on energy projects to achieve the full energy potential.

Suggested Citation

  • Al-mulali, Usama & Binti Che Sab, Che Normee, 2012. "The impact of energy consumption and CO2 emission on the economic growth and financial development in the Sub Saharan African countries," Energy, Elsevier, vol. 39(1), pages 180-186.
    • Handle: RePEc:eee:energy:v:39:y:2012:i:1:p:180-186
    DOI: 10.1016/j.energy.2012.01.032
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    More about this item

    Keywords

    Total primary energy consumption; CO2 emission; GDP growth; Financial development; Sub Saharan African countries;
    All these keywords.

    JEL classification:

    • O1 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • 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

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