Abstract

This study examines the short- and long-run impacts of economic growth and unemployment (SDG 8), energy consumption (SDG 7) and income inequality (SDG 10) on CO2 emissions in South Africa over the period 1980-2012 to establish potential synergy/trade-off to achieve these goals. We use the autoregressive distributed lag (ARDL) approach to cointegration technique. Our results show that the promotion of economic growth (SDG 8) as well as the reduction in energy consumption/increase in energy efficiency (SDG 7) can be achieved in synergy with the reduction of CO2 emissions (SDG 13). On the other hand, our results suggest a trade-off between reducing unemployment rate or achieving productive employment and decent work (SGD 8) and mitigating CO2 emissions (SDG 13). Neither a synergy nor trade-off (neutral relationship) is found between the reduction of income inequality (SDG 10) and the reduction of CO2 emissions (SDG 13). Our findings highlight the importance of mainstreaming SDG’s policy interactions to achieve sustainable development goals, while also stressing the potential for South Africa to achieve low-carbon development should economic growth be decoupled from carbon-intensive energy use through policies that promote access and effective use of clean energy. The transition to clean energy is therefore emphasized and relevant factors underpinning such as transition should be explored further. 
 
 Highlights
 
 
 This study examines the short- and long-run impacts of economic growth and unemployment (SDG 8), energy consumption (SDG 7) and income inequality (SDG 10) on CO2 emissions in South Africa 
 The autoregressive distributed lag approach to cointegration is employed
 A synergy is established between the promotion of economic growth (SDG 8) and the reduction of CO2 emissions (SDG 13), and between the reduction in energy consumption/increase in energy efficiency (SDG 7) and the reduction of CO2 emissions (SDG 13)
 A trade-off is confirmed between reducing unemployment rate or achieving productive employment and decent work (SDG 8) and mitigating CO2 emissions (SDG 13)
 A neutral relationship is found between the reduction of income inequality (SDG 10) and the reduction of CO2 emissions (SDG 13)
 Policymakers need to mainstream SDG’s policy interactions to achieve sustainable development goals
 
 
 South Africa can achieve low-carbon development should economic growth be decoupled from carbon-intensive energy use through policies that promote access and effective use of clean energy

Highlights

  • An important challenge to the international development community is to design comprehensive development policies that simultaneously address each and every development issue in a manner that maximizes synergies jsd.ccsenet.orgJournal of Sustainable DevelopmentVol 12, No 4; 2019 and/or minimizes trade-offs

  • As a framework for this analysis, we posit that synergy is materialized when: economic growth is achieved alongside a reduction in CO2 emissions; energy efficiency or low energy consumption is associated with CO2 emissions reduction; reduction in income inequality leads to a decrease in CO2 emissions; decrease in unemployment rate is related to a decrease in CO2 emissions

  • In a similar case study for the U.S, Baek and Gweisah (2013) found 0.23-percent and 0.35-percent decrease in CO2 emissions in the shortand long-run for a 1-percent increase in GDP. These results suggest a synergy between the promotion of economic growth (SDG 8) and CO2 emissions reduction (SDG 13) in South Africa in the short- and long-run

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Summary

Introduction

Understanding the nature of such relationship is crucial to effectively implement SDGs-related policy. This is the case in the current context marked by the need to combat climate change (SDG 13), one of the most entrenched and interconnected issues under the SDGs. Over the last two decades, the relationship between carbon dioxide (CO2) emissions, a proxy for climate change, and other SDGs has been intensively assessed by researchers. Exploring the potential synergies/trade-offs between the SDGs, and the inter-relation with CO2 emissions has significant policy importance. A recent IPCC Special Report on Global Warming of 1.5°C indicates that the avoided climate change impacts on sustainable development would be greater if synergies are maximized while trade-offs are minimized (IPCC 2018). We conclude that a trade-off relationship applies and if neither synergy nor trade-off exist, a neutral relationship ensues

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