Exploring the contribution of energy price to carbon emissions in African countries.

Bamanga Umar,Abul Quasem Al-Amin,Md Mahmudul Alam

doi:10.1007/s11356-020-10641-2

Abstract

The increasing level of greenhouse gas carbon emission currently exacerbates the devastating effect of global warming on the Earth's ecosystem. Energy usage is one of the most important determinants that is increasing the amount of carbon gases being released. Simultaneously, the level of energy usage is derived by the price, and therefore, this study examines the contribution of energy price to carbon gas emissions in thirteen African nations for the period spanning 1990 to 2017. It does this by utilising the cross-sectional dependence (CD), augmented mean group (AMG) and pooled mean group (PMG) panel modelling methods. The findings of the AMG model suggest that a 1% increase in energy price leads to a 0.02% decrease in carbon emission. The results further reveal that a 1% increase in energy intensity and technological innovation leads to 0.04% and 3.65% increase in carbon emission, respectively, in the selected African countries. Findings will help policymakers to implement effective energy price policies to reduce carbon emissions and achieve sustainable development goals especially in the emerging economies of Africa.

Highlights

The increasing volume of greenhouse carbon emissions has reignited the debate on the consequences of environmental degradation
This study identified two major streams on the contribution of energy development linked to carbon emissions in African countries, namely (i) Environmental Kuznets Curve and linked between the contribution of energy price to carbon emissions to know whether there is a link with significant nexus between energy price and carbon emissions, and (ii) Environmental Kuznets Curve and linked between the contribution of energy intensity and technological innovation to understand whether there is a link with significant nexus between technological innovation and carbon emissions
To accomplish the goal of the present study, this section contains the results of the cross-section dependence (CD), second-generation unit root test as well as the results of the augmented mean group (AMG) model

Summary

Introduction

The increasing volume of greenhouse carbon emissions has reignited the debate on the consequences of environmental degradation. Extreme weather, which is a symptom of overarching climatic changes, is a threat to human health and the environment. Chen, Wang, Cui, Huang, and Song (2018) reveal that an upsurge in carbon emissions is the main cause of global warming while Paramati, Mo, and Gupta (2017) posit that the majority of CO2 production arises from burning of fossil fuels consisting of coal and gas. These sources deplete the quality of the environment. A well-designed carbon price is necessary for mitigating the increasing greenhouse carbon emissions and for fostering growth (Baranzini, Weber, Bareit, & Mathys, 2013; Stiglitz, Sen, & Fitoussi, 2017)

Objectives

Methods

Results

Discussion

Conclusion