IDEAS home Printed from https://ideas.repec.org/p/zbw/esprep/234131.html
   My bibliography  Save this paper

CO₂ Emissions and Economic Development in Africa: Evidence from A Dynamic Spatial Panel Model

Author

Listed:
  • Espoir, Delphin Kamanda
  • Sunge, Regret

Abstract

We examine the impact of economic development on Co2 emissions using a sample of 48 African countries for the period 1996-2012. This study is born out of the realisation that despite lower contribution to Green House Gas (GHG) emissions and global warming, Africa suffers the most from climate change. We make two contributions. First, we re-examine the Environmental Kuznets Curve (EKC) hypothesis using pooled OLS, Fixed and Random effects, and GMM. Unlike existing studies that impose country homogeneity on the relationship, we perform a linear quadratic regression to account for factors heterogeneity. Second, we provide evidence-based spatial econometric considerations, something that existing studies have overlooked. We employ a Maximum Likelihood Estimator (MLE) within the Fixed and Random effects framework on the dynamic Spatial Durbin Model (SDM). The results are as follow: (1) we find evidence for the EKC hypothesis for the entire sample of 48 countries, even though the relationship is weak, (2) when we control for factor heterogeneity, we find that the impact of economic development on Co2 emissions is heterogeneous across countries. In some countries, the EKC hypothesis holds while it breaks in others. (3) there exist significant direct and spillover effects in the Co2-growth nexus across countries. Considering the heterogeneity of the EKC, we recommend that African countries’ nationally determined contributions (NDCs) should be harmonised in the interest of the Paris Agreement on climate. Also, multilateral organisations and private investors should increase their investments in renewable energy development projects to ensure compatibility between growth and environmental sustainability.

Suggested Citation

  • Espoir, Delphin Kamanda & Sunge, Regret, 2021. "CO₂ Emissions and Economic Development in Africa: Evidence from A Dynamic Spatial Panel Model," EconStor Preprints 234131, ZBW - Leibniz Information Centre for Economics.
    • Handle: RePEc:zbw:esprep:234131
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/234131/1/DK-ESPOIR_R-SUNGE_Reviewd_21_5.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Abid, Mehdi, 2016. "Impact of economic, financial, and institutional factors on CO2 emissions: Evidence from Sub-Saharan Africa economies," Utilities Policy, Elsevier, vol. 41(C), pages 85-94.
    2. Goodness C. Aye & Prosper Ebruvwiyo Edoja, 2017. "Effect of economic growth on CO2 emission in developing countries: Evidence from a dynamic panel threshold model," Cogent Economics & Finance, Taylor & Francis Journals, vol. 5(1), pages 1379239-137, January.
    3. Borck, Rainald & Schrauth, Philipp, 2021. "Population density and urban air quality," Regional Science and Urban Economics, Elsevier, vol. 86(C).
    4. Choi, Eunho & Heshmati, Almas & Cho, Yongsung, 2010. "An Empirical Study of the Relationships between CO2 Emissions, Economic Growth and Openness," IZA Discussion Papers 5304, Institute of Labor Economics (IZA).
    5. Radmehr, Riza & Henneberry, Shida Rastegari & Shayanmehr, Samira, 2021. "Renewable Energy Consumption, CO2 Emissions, and Economic Growth Nexus: A Simultaneity Spatial Modeling Analysis of EU Countries," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 13-27.
    6. Muhammad Kamran Khan & Muhammad Imran Khan & Muhammad Rehan, 2020. "The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-13, December.
    7. P. Srinivasan & Inder Siddanth Ravindra, 2015. "Causality among Energy Consumption, CO2 Emission, Economic Growth and Trade," Foreign Trade Review, , vol. 50(3), pages 168-189, August.
    8. Oluyomi A. Osobajo & Afolabi Otitoju & Martha Ajibola Otitoju & Adekunle Oke, 2020. "The Impact of Energy Consumption and Economic Growth on Carbon Dioxide Emissions," Sustainability, MDPI, vol. 12(19), pages 1-16, September.
    9. Jie Liu & Chao Bi, 2019. "Effects of Higher Education Levels on Total Factor Productivity Growth," Sustainability, MDPI, vol. 11(6), pages 1-12, March.
    10. Wang, Yuan & Zhang, Chen & Lu, Aitong & Li, Li & He, Yanmin & ToJo, Junji & Zhu, Xiaodong, 2017. "A disaggregated analysis of the environmental Kuznets curve for industrial CO2 emissions in China," Applied Energy, Elsevier, vol. 190(C), pages 172-180.
    11. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
    12. Cuma Bozkurt & Yusuf Akan, 2014. "Economic Growth, CO2 Emissions and Energy Consumption: The Turkish Case," International Journal of Energy Economics and Policy, Econjournals, vol. 4(3), pages 484-494.
    13. Jamiu Adetola Odugbesan & Husam Rjoub, 2020. "Relationship Among Economic Growth, Energy Consumption, CO2 Emission, and Urbanization: Evidence From MINT Countries," SAGE Open, , vol. 10(2), pages 21582440209, April.
    14. Olusanya Elisa Olubusoye & Dasauki Musa & Salvatore Ercolano, 2020. "Carbon Emissions And Economic Growth In Africa: Are They Related?," Cogent Economics & Finance, Taylor & Francis Journals, vol. 8(1), pages 1850400-185, January.
    15. J. Paul Elhorst, 2014. "Matlab Software for Spatial Panels," International Regional Science Review, , vol. 37(3), pages 389-405, July.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Shan, Yi & Ren, Zhengshi, 2023. "Does tourism development and renewable energy consumption drive high quality economic development?," Resources Policy, Elsevier, vol. 80(C).
    2. Khan, Samiha & Murshed, Muntasir & Ozturk, Ilhan & Khudoykulov, Khurshid, 2022. "The roles of energy efficiency improvement, renewable electricity production, and financial inclusion in stimulating environmental sustainability in the Next Eleven countries," Renewable Energy, Elsevier, vol. 193(C), pages 1164-1176.
    3. Ping Lu & Zhihong Li & Ying Wen & Jianhui Liu & Yue Yuan & Ruiyu Niu & Yiran Wang & Liangliang Han, 2023. "Fresh insights for sustainable development: Collaborative governance of carbon emissions based on social network analysis," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(3), pages 1873-1887, June.
    4. Mary Donkor & Yusheng Kong & Emmanuel Kwaku Manu & Albert Henry Ntarmah & Florence Appiah-Twum, 2022. "Economic Growth and Environmental Quality: Analysis of Government Expenditure and the Causal Effect," IJERPH, MDPI, vol. 19(17), pages 1-23, August.
    5. Yuanying Chi & Wenbing Zhou & Songlin Tang & Yu Hu, 2022. "Driving Factors of CO 2 Emissions in China’s Power Industry: Relative Importance Analysis Based on Spatial Durbin Model," Energies, MDPI, vol. 15(7), pages 1-15, April.
    6. Rajabi Kouyakhi, Nima, 2023. "Exploring the interplay among energy dependence, CO2 emissions, and renewable resource utilization in developing nations: Empirical insights from Africa and the middle east using a quantile-on-quantil," Energy, Elsevier, vol. 283(C).
    7. Ul-Durar, Shajara & De Sisto, Marco & Arshed, Noman & Naveed, Shabana & Farooqi, Madiha Rehman, 2024. "FinTech adoption in achieving ecologically sustainable mineral management in Asian OBOR countries – A cross-section and time autoregressive robust analysis," Resources Policy, Elsevier, vol. 91(C).
    8. Zakari, Abdulrasheed & Tawiah, Vincent & Khan, Irfan & Alvarado, Rafael & Li, Guo, 2022. "Ensuring sustainable consumption and production pattern in Africa: Evidence from green energy perspectives," Energy Policy, Elsevier, vol. 169(C).
    9. Shuping Cheng & Lingjie Meng & Weizhong Wang, 2022. "The Impact of Environmental Regulation on Green Energy Technology Innovation—Evidence from China," Sustainability, MDPI, vol. 14(14), pages 1-23, July.
    10. Zwakele Dlamini & Ntokozo Nzimande & Mduduzi Biyase & Hlalefang Khobai & Mathias Manguzvane & Sanele Gumede, 2024. "Carbon Emissions and Growth: The Role of Trade and Urbanization in Sub-Saharan Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 14(5), pages 605-614, September.
    11. Bouazza Elamine Zemri & Sidi Mohamed Boumediene Khetib, 2024. "Can Sustainable Economic Development Curtail Carbon Dioxide Emissions? Insights from Algeria’s Industry," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 3, pages 70-83.
    12. Djedaiet, Aissa & Ayad, Hicham & Ben-Salha, Ousama, 2024. "Oil prices and the load capacity factor in African oil-producing OPEC members: Modeling the symmetric and asymmetric effects," Resources Policy, Elsevier, vol. 89(C).
    13. Espoir, Delphin Kamanda & Sunge, Regret & Bannor, Frank, 2021. "Economic growth and CO₂ emissions: Evidence from heterogeneous panel of African countries using bootstrap Granger causality," EconStor Preprints 235141, ZBW - Leibniz Information Centre for Economics.
    14. Khezri, Mohsen & Karimi, Mohammad Sharif & Naysary, Babak, 2024. "Exploring the impact of entrepreneurial indicators on CO2 emissions within the environmental Kuznets curve framework: a cross-sectional study," LSE Research Online Documents on Economics 123865, London School of Economics and Political Science, LSE Library.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Espoir, Delphin Kamanda & Sunge, Regret & Bannor, Frank, 2021. "Economic growth and CO₂ emissions: Evidence from heterogeneous panel of African countries using bootstrap Granger causality," EconStor Preprints 235141, ZBW - Leibniz Information Centre for Economics.
    2. Allauddin Kakar & Anwar Khan & Akbar Khan, 2024. "Analyzing the Role of Governance, ICT, and Urbanization on Environment in South Asian Countries," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 15(1), pages 2682-2703, March.
    3. Tomiwa Sunday Adebayo & Abraham Ayobamiji Awosusi & Jamiu Adetola Odugbesan & Gbenga Daniel Akinsola & Wing-Keung Wong & Husam Rjoub, 2021. "Sustainability of Energy-Induced Growth Nexus in Brazil: Do Carbon Emissions and Urbanization Matter?," Sustainability, MDPI, vol. 13(8), pages 1-21, April.
    4. Henrique Oliveira & Víctor Moutinho, 2021. "Renewable Energy, Economic Growth and Economic Development Nexus: A Bibliometric Analysis," Energies, MDPI, vol. 14(15), pages 1-28, July.
    5. Hlalefang Khobai & Katlego Sithole, 2022. "The Relationship between Economic Growth and Carbon Emissions in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 516-525, March.
    6. Li, Xuetao & Wang, Feilan & Al-Razgan, Muna & Mahrous Awwad, Emad & Zilola Abduvaxitovna, Shamansurova & Li, Zeyun & Li, Jianfeng, 2023. "Race to environmental sustainability: Can structural change, economic expansion and natural resource consumption effect environmental sustainability? A novel dynamic ARDL simulations approach," Resources Policy, Elsevier, vol. 86(PA).
    7. Derese Kebede Teklie & Mete Han YaÄŸmur, 2024. "Effect of Economic Growth on CO2 Emission in Africa: Do Financial Development and Globalization Matter?," International Journal of Energy Economics and Policy, Econjournals, vol. 14(1), pages 121-140, January.
    8. Mathy Sane & Miroslav Hajek & Joseph Phiri & Jamilu Said Babangida & Chukwudi Nwaogu, 2022. "Application of Decoupling Approach to Evaluate Electricity Consumption, Agriculture, GDP, Crude Oil Production, and CO 2 Emission Nexus in Support of Economic Instrument in Nigeria," Sustainability, MDPI, vol. 14(6), pages 1-15, March.
    9. Espoir, Delphin Kamanda & Mudiangombe, Benjamin & Bannor, Frank & Sunge, Regret & Mubenga Tshitaka, Jean-Luc, 2021. "CO₂ emissions and economic growth: Assessing the heterogeneous effects across climate regimes in Africa," EconStor Preprints 235479, ZBW - Leibniz Information Centre for Economics.
    10. Nuno Carlos Leitão, 2021. "Testing the Role of Trade on Carbon Dioxide Emissions in Portugal," Economies, MDPI, vol. 9(1), pages 1-15, February.
    11. Hayat Khan & Liu Weili & Itbar Khan, 2022. "Environmental innovation, trade openness and quality institutions: an integrated investigation about environmental sustainability," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3832-3862, March.
    12. Malayaranjan Sahoo & Narayan Sethi, 2022. "The dynamic impact of urbanization, structural transformation, and technological innovation on ecological footprint and PM2.5: evidence from newly industrialized countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 4244-4277, March.
    13. Hlalefang Khobai & Sanele Stungwa & Olebogeng Oliphant & Oboile Maphuto & Victor Mofema Mbua, 2024. "Symmetric Impact of Carbon Emissions on Poverty in South Africa: New Evidence from ARDL Bounds Test," International Journal of Energy Economics and Policy, Econjournals, vol. 14(3), pages 179-187, May.
    14. Janusz Myszczyszyn & Błażej Suproń, 2022. "Relationship among Economic Growth, Energy Consumption, CO 2 Emission, and Urbanization: An Econometric Perspective Analysis," Energies, MDPI, vol. 15(24), pages 1-18, December.
    15. Amir Iqbal & Xuan Tang & Samma Faiz Rasool, 2023. "Investigating the nexus between CO2 emissions, renewable energy consumption, FDI, exports and economic growth: evidence from BRICS countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(3), pages 2234-2263, March.
    16. Abdelaziz Boukhelkhal, 2022. "Energy use, economic growth and CO2 emissions in Africa: does the environmental Kuznets curve hypothesis exist? New evidence from heterogeneous panel under cross-sectional dependence," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(11), pages 13083-13110, November.
    17. Chimere O. Iheonu & Ogochukwu C. Anyanwu & Obinna K. Odo & Solomon Prince Nathaniel, 2021. "Does Economic Growth, International Trade and Urbanization uphold Environmental Sustainability in sub-Saharan Africa? Insights from Quantile and Causality Procedures," Working Papers 21/003, European Xtramile Centre of African Studies (EXCAS).
    18. Fatima Sharif & Ihsanullah Hussain & Maria Qubtia, 2023. "Energy Consumption, Carbon Emission and Economic Growth at Aggregate and Disaggregate Level: A Panel Analysis of the Top Polluted Countries," Sustainability, MDPI, vol. 15(4), pages 1-18, February.
    19. Irfan Khan & Fujun Hou, 2021. "The Impact of Socio-economic and Environmental Sustainability on CO2 Emissions: A Novel Framework for Thirty IEA Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 155(3), pages 1045-1076, June.
    20. Yu-Ke, Chen & Hassan, Muhammad Shahid & Kalim, Rukhsana & Mahmood, Haider & Arshed, Noman & Salman, Muhammad, 2022. "Testing asymmetric influence of clean and unclean energy for targeting environmental quality in environmentally poor economies," Renewable Energy, Elsevier, vol. 197(C), pages 765-775.

    More about this item

    Keywords

    Economic development; Environmental pollution; EKC hypothesis; Spatial Durbin model; Africa;
    All these keywords.

    JEL classification:

    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:esprep:234131. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/zbwkide.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.