Relationship between greenhouse gas emission, energy consumption, and economic growth: evidence from some selected oil-producing African countries

Abdulmalik M Yusuf,Suleiman O Mamman,Attahir Babaji Abubakar

doi:10.1007/s11356-020-08065-z

Abstract

This paper investigates the relationship between greenhouse gas emissions, energy consumption, and output growth among African OPEC countries (Libya, Nigeria, Angola, Algeria, Equatorial Guinea, and Gabon) using the panel autoregressive distributed lag model (PARDL) estimated by means of mean group (MG) and pooled mean group (PMG) for the period 1970–2016. The paper estimated three panel models comprising the components of greenhouse gasses which includes nitrous oxide, carbon dioxide (CO2), and methane and examined their relationship with economic growth and energy consumption. The findings of the study showed evidence of a positive impact of economic growth on both CO2 and methane emissions in the long run. Its impact on nitrous oxide emissions although positive was found to be statistically insignificant. Energy consumption was also found to produce an insignificant positive impact on CO2, methane, and nitrous oxide emissions in the long run. In the short run, economic growth exerts a significant positive effect on methane emissions; however, its effect on CO2 and nitrous oxide emissions although positive was found to be statistically insignificant. Energy consumption produces an insignificant impact on all components of greenhouse gasses in the short run. In addition, our empirical results showed the presence of a non-linear relationship between methane emissions and economic growth, confirming the existence of the environmental Kuznets curve (EKC) only in the case of methane emissions model.

Highlights

Environmental degradation continues to be a serious challenge in Africa, in oil-producing African countries
This study investigated the impact of economic growth and energy consumption on greenhouse gases for OPEC African member countries
The focus on these countries is premised upon the high level of emission of greenhouse gases in them partly since the economies are largely oil-based, with oil exportation taking the largest share of their export components

Summary

Introduction

Environmental degradation continues to be a serious challenge in Africa, in oil-producing African countries. This largely due to the hazards associated with oil extraction and refining activities. These activities entail the exhaustion of carbon which produces a negative effect on the environment via greenhouse gasses emission. Aberdeen, United Kingdom in extant literature posit that the growth of economic activities and energy consumption is associated with increasing greenhouse gas emission, largely due to utilization of non-efficient energy methods (see Saidi and Hammami, 2015; Muhammad 2019). An increase in greenhouse gasses emission portends danger for the environment and humanity via its negative implication on climate change. As noted by Stern (2006), the negative effect of climate change on countries is not on equal footing, poor nations, and individuals are likely to suffer the negative consequences earlier and the most; the need for concerted efforts to mitigate the challenge of climate change before it exacerbates further

Methods

Results

Conclusion