Abstract
This study aims to examine the influence of energy trade, energy use, and carbon emission on economic growth for the period of 1970-2019, in regional cooperation of West African states. This study employed second generation techniques. The results revealed that energy trade increased economic growth in the long run. However, in short run energy trade reduced in economic growth. Besides, energy consumption impeded the economic growth in both short run and long run, while carbon emission increased the economic growth in both short run and long run. The energy crisis of 2014 decreased economic growth. Moreover, the result of interaction term of energy consumption and carbon emission showed positive influence on economic in both short run and long run. In addition, the results of causality showed uni-directional causal relationship from energy trade to economic growth. Policy recommendations can be made, in the sense that policies should be geared towards promoting renewable sustainable energy conservation policy that could possibly improve economic integration.Keywords: Economic Growth, Energy Trade, Regional Cooperation of West African States, Second Generation TechniquesJEL Classifications: F34, K32, O55, C01DOI: https://doi.org/10.32479/ijeep.11598
Highlights
Energy has evolved into an important catalyst for propelling society
The crux of this paper aims to analyze the effect of energy trade, energy consumption, and carbon emission on economic growth
On the short run the only carbon emission appears to be positively significant while the variables energy trade and energy use prevail to be negative relationship yet statistically significant in the short run. This implies that for every 1% increase on the dependent variable LNGDP there would be a corresponding decrease on energy trade by 68% and energy use by 86% in the short run
Summary
Energy has evolved into an important catalyst for propelling society. The power of man to harness sunlight can be traced back to the origins of energy. The concept of energy trade has always been characterized by a fast expansion of capital markets and the virtual economy, as well as the significant increase in financial derivatives and the excessive flow of speculative impact on the oil market The prominence of these external elements makes protection of their interests more difficult for some emerging nations, and makes international pipeline building, market supply and regular corporate fusion and takeovers variables more challenging (Waheed et al, 2019). The importance of trade towards energy consumption has been extensively hypothesized across many literatures It expands production and economic activities leading via domestic operations which harness exports of a particular nation leading to overall economic boom. Of Ghana, Nigeria and Corted’ivore remain largely the providers of electricity through various hydro dams across the region Against this background, the crux of this paper aims to analyze the effect of energy trade, energy consumption, and carbon emission on economic growth. To achieve the above objective the paper is organized in to five sections. section one covers the introduction, chapter two highlights review of existing literatures, section three maintains empirical model, data and methodology, while section four present results and discussion and lastly the fifth section comes with summary, conclusion and recommendation
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