Carbon Lock-In and Sustainable Growth Challenges : Evidence from Sub-Saharan Africa

Abstract

This research seeks to investigate the risks of carbon lock-in by examining the potential factors influencing carbon dioxide emissions levels in Sub-Saharan Africa. Given this, we employed a panel Sub-Saharan Africa comprised of 35 countries in the sub-region, from 2000 to 2014 with cross-sectional dependence among variables. We used the Two-step robust System Generalized Method of Moments to estimate the influencing factors of carbon emissions level that create path dependency. The main findings are: (1) income per capita, urbanization, and financial resources contribute to the increase of carbon emissions level in the Sub-Saharan Africa countries, in the short-run; (2) we noticed that in the short-run, the impacts of fossil fuels per capita, energy intensity and total energy consumption are insignificant; (3) in the long-run, income per capita, urbanization and financial resources increase carbon emissions level; (4) from various factors that increase carbon emissions level, these factors form a path dependency that slow the introduction of low-carbon systems, thus, creating carbon lock-in in the Sub-Saharan Africa countries. Considering this, policymakers and governments should ensure the strict compliance of environmental regulations by financial institutions and organizations, promote low-carbon cities during economic transformation, and encourage investments in low-carbon projects. The government should also educate and build awareness on the effects of environmental pollution on population health, provide incentives for energy conservation and promote the use of clean products to avoid future risks of lock-in in the sub-region.