Does Energy consumption matter for Climate change in Africa? New Insights from Panel Data Analysis

Abstract

Africa, abundant in natural resources, faces growth challenges due to widespread energy poverty and heightened biofuel use with severe environmental impacts. Recognizing the connection between energy consumption and climate change is crucial for implementing sustainable solutions and establishing guidelines for future energy practices amidst the adverse effects of climate change on the continent's ecosystem. To this effect, the present study examines the effect of energy consumption on climate change in African countries from 2004-2019. Employing the Discroll and Kraay estimation technique and the Generalized Method of Moment on secondary data, the results indicate that Energy Use as kg of oil, Fossil Fuel Energy Consumption, and Energy Depletion positively and significantly affect Climate change. At the same time, Renewable Energy Consumption reveals a correcting effect on climate variations in Africa. The results are valid for other climate change measures and are robust to endogeneity control. Based on the results, applicable economic policies are proposed regarding the efficient and optimum use of various energy sources for Africa's clean and sustainable climatic conditions.