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Industrialization and CO 2 Emissions in Sub-Saharan Africa: The Mitigating Role of Renewable Electricity

Author

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  • Urszula Mentel

    (Department of Projects Management and Security Policy, Faculty of Management, Rzeszow University of Technology, 35-959 Rzeszow, Poland)

  • Elżbieta Wolanin

    (Department of Quantitative Methods, Faculty of Management, Rzeszow University of Technology, 35-959 Rzeszow, Poland)

  • Mansur Eshov

    (Department of Academic Affairs, Tashkent State University of Economics, Islam Karimov Street 49, Tashkent 100066, Uzbekistan)

  • Raufhon Salahodjaev

    (Department of Academic Affairs, Tashkent State University of Economics, Islam Karimov Street 49, Tashkent 100066, Uzbekistan)

Abstract

This study aims to explore the relationship between industry value added, renewable energy, and CO 2 emissions in a sample of 44 Sub-Saharan African countries over the period 2000–2015. This study makes several important contributions to extant research. While existing research was focused on the renewable energy-CO 2 emissions nexus, the current study assesses the moderating role of the renewables sector in the industrialization-CO2 emissions relationship. In addition, this study considers whether EKC relationships will hold after accounting for structural transformations (including industrial contributions to GDPs). Moreover, we are revising the existence of the EKC framework for the Sub-Saharan African countries. Using a two-step system GMM estimator, we found that the share of industry in GDP has a significant positive impact on CO 2 emissions, while renewable electricity output reduces CO 2 emissions. If causal, a one percentage point increase in renewable electricity output reduces carbon emissions by 0.22%. Moreover, the renewable energy sector then mediates the positive effect of industry value added on CO 2 emissions. We also find evidence for the statistical significance of the inverted U-shaped relationship between GDP per capita and CO 2 emissions.

Suggested Citation

  • Urszula Mentel & Elżbieta Wolanin & Mansur Eshov & Raufhon Salahodjaev, 2022. "Industrialization and CO 2 Emissions in Sub-Saharan Africa: The Mitigating Role of Renewable Electricity," Energies, MDPI, vol. 15(3), pages 1-12, January.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:3:p:946-:d:736285
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    References listed on IDEAS

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    11. Ali, Uzair & Guo, Qingbin & Nurgazina, Zhanar & Sharif, Arshian & Kartal, Mustafa Tevfik & Kılıç Depren, Serpil & Khan, Aftab, 2023. "Heterogeneous impact of industrialization, foreign direct investments, and technological innovation on carbon emissions intensity: Evidence from Kingdom of Saudi Arabia," Applied Energy, Elsevier, vol. 336(C).
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    13. Caglar, Abdullah Emre & Askin, Bekir Emre, 2023. "A path towards green revolution: How do competitive industrial performance and renewable energy consumption influence environmental quality indicators?," Renewable Energy, Elsevier, vol. 205(C), pages 273-280.
    14. Li, Menghan & Zaidan, Amal Mousa & Ageli, Mohammed Moosa & Wahab, Salman & Khan, Zeeshan, 2023. "Natural resources, environmental policies and renewable energy resources for production-based emissions: OECD economies evidence," Resources Policy, Elsevier, vol. 86(PA).
    15. Wang, Chengjie & Zhou, Dawei & Guo, Xiaojing & Kayani, Umar Nawaz, 2024. "Role of natural resource rents, financial development and technological research in achieving sustainable development: A study of South Asian Countries," Resources Policy, Elsevier, vol. 89(C).
    16. Su, Mengying & Yang, Zhongyu & Abbas, Shujaat & Bilan, Yuriy & Majewska, Agnieszka, 2023. "Toward enhancing environmental quality in OECD countries: Role of municipal waste, renewable energy, environmental innovation, and environmental policy," Renewable Energy, Elsevier, vol. 211(C), pages 975-984.

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