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The criticality of growth, urbanization, electricity and fossil fuel consumption to environment sustainability in Africa

Author

Listed:
  • Simplice A. Asongu

    (Yaounde, Cameroon)

  • Mary Oluwatoyin Agboola

    (Riyadh, Saudi Arabia)

  • Andrew Adewale Alola

    (Istanbul Gelisim University, Istanbul, Turkey)

  • Festus Victor Bekun

    (Istanbul Gelisim University, Istanbul, Turkey)

Abstract

While most African economies are primarily sandwiched with the seemingly unsurmountable task of attaining consistent economic growth and unhindered energy supply, the enormous threat posed by environmental degradation has further complicated the economic and environmental sustainability drive. In this context, the present study examines the effect of economic growth, urbanization, electricity consumption, fossil fuel energy consumption, and total natural resources rent on pollutant emissions in Africa over the period 1980-2014. By employing selected African countries, the current study relies on the Kao and Pedroni cointegration tests to cointegration analysis, the Pesaran’s Panel Pooled Mean Group-Autoregressive distributive lag methodology (ARDL-PMG) for long run regression while Dumitrescu and Hurlin (2012) is employed for the detection of causality direction among the outlined variables. The study traces long run equilibrium relationships b-etween examined indicators. The ARDL-PMG results suggest a statistical positive relationship between pollutant emissions and urbanization, electricity consumption and non-renewable energy consumption. Dumitrescu and Hurlin (2012) Granger causality test lends support to the long-run regression results. Bi-directional causality is observed between pollutant emissions, electricity consumption, economic growth and pollutant emissions while a unidirectional causality is apparent between total natural resources rent and pollutant emissions. Based on these results, several policy implications for the African continent were suggested. (a) The need for a paradigm shift from fossil fuel sources to renewables is encouraged in the region (b) The need to embrace carbon storage and capturing techniques to decouple pollutant emissions from economic growth on the continent’s growth trajectory. Further policy insights are elucidated.

Suggested Citation

  • Simplice A. Asongu & Mary Oluwatoyin Agboola & Andrew Adewale Alola & Festus Victor Bekun, 2019. "The criticality of growth, urbanization, electricity and fossil fuel consumption to environment sustainability in Africa," Research Africa Network Working Papers 19/093, Research Africa Network (RAN).
    • Handle: RePEc:abh:wpaper:19/093
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    References listed on IDEAS

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    Cited by:

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    2. Olatunji A. Shobande & Simplice A. Asongu, 2021. "The rise and fall of the energy-carbon Kuznets curve: Evidence from Africa," Working Papers 21/069, European Xtramile Centre of African Studies (EXCAS).
    3. Yuke Yuan & Sophia Shuang Chen & Yi Miao, 2023. "Unmanaged Urban Growth in Dar es Salaam: The Spatiotemporal Pattern and Influencing Factors," Sustainability, MDPI, vol. 15(13), pages 1-18, July.
    4. Asongu, Simplice A. & Odhiambo, Nicholas M., 2021. "Inequality, finance and renewable energy consumption in Sub-Saharan Africa," Renewable Energy, Elsevier, vol. 165(P1), pages 678-688.
    5. Nicholas M. Odhiambo, "undated". "Trade Openness And Energy Consumption In Sub-Saharan African Countries: A Multivariate Panel Granger Causality Test," Working Papers AESRI08, African Economic and Social Research Institute (AESRI).
    6. Odhiambo, 2021. "Trade Openness and Energy Consumption in Sub-Saharan African Countries: A Multivariate Panel Granger Causality Test," Working Papers AERI0821, African Economic and Social Research Institute (AESRI).
    7. Olatunji A. Shobande & Simplice A. Asongu, 2021. "Financial Development, Human Capital Development and Climate Change in East and Southern Africa," Working Papers 21/042, European Xtramile Centre of African Studies (EXCAS).
    8. Tao Zhang & Lin Li, 2021. "Research on temporal and spatial variations in the degree of coupling coordination of tourism–urbanization–ecological environment: a case study of Heilongjiang, China," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(6), pages 8474-8491, June.
    9. Jean Pierre Namahoro & Qiaosheng Wu & Haijun Xiao & Na Zhou, 2021. "The Impact of Renewable Energy, Economic and Population Growth on CO 2 Emissions in the East African Region: Evidence from Common Correlated Effect Means Group and Asymmetric Analysis," Energies, MDPI, vol. 14(2), pages 1-21, January.
    10. Wojciech Chmielewski & Marta Postuła & Przemysław Dubel, 2023. "The Impact of Expenditure on Research and Development on Selected Energy Factors in the European Union," Energies, MDPI, vol. 16(8), pages 1-18, April.
    11. Bo Yang & Minhaj Ali & Shujahat Haider Hashmi & Mohsin Shabir, 2020. "Income Inequality and CO 2 Emissions in Developing Countries: The Moderating Role of Financial Instability," Sustainability, MDPI, vol. 12(17), pages 1-24, August.

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    More about this item

    Keywords

    non- renewable energy consumption; electricity consumption; economic growth; panel econometrics; Africa;
    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
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General

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