Pollutant emissions, energy use and real output in Sub-Saharan Africa (SSA) countries

Abstract

Industrialisation is pivotal to growth sustainability and this requires intense energy use that may invariably trigger pollutant emissions thereby necessitating some evidence-based policy concerns. This study therefore examines the dynamic connection among pollutant emission, energy use and real output per capita in SSA. Owing to cross-sectional dependence, the Prais-Winsten model with panel-corrected standard error (PCSE) alongside the panel spatial correlation consistent (PSCC) approach is applied and key findings are established. First, the EKC hypothesis holds and this is striking for both oil-rich and oil-poor SSA countries. Second, energy use induces pollutant emissions in oil-rich SSA countries but not in oil-poor SSA countries. Third, pollutant emissions and energy use are real output per capita-enhancing in SSA generally and in oil-poor countries. Thus, policy measures to safeguard efficient optimisation of energy use in ensuring a balance as well as developing SSA’s rich renewable energy sources is imperative for long-run growth.