The causal effect of carbon dioxide emissions, electricity consumption, economic growth, and industrialization in Sierra Leone

Abstract

ABSTRACTThe study investigated the causal effect of carbon dioxide emissions, electricity consumption, economic growth, and industrialization in Sierra Leone from 1980–2011 by employing the linear regression and the vector error correction models. Evidence from both models show a long-run equilibrium relationship between carbon dioxide emissions, electricity consumption, economic growth, and industrialization in Sierra Leone. Evidence from the variance decomposition shows that 7% of future shock in carbon dioxide emissions is caused by electricity consumption, 20% of future shock in economic growth is caused by carbon dioxide emissions, 3% of future shock in electricity consumption is caused by industrialization, and 48% of future shock in industrialization is caused by economic growth. The future carbon dioxide emissions in Sierra Leone can be minimized if the majority of the electricity consumed comes from clean and renewable energy sources.