Towards a sustainable consumption approach: the effect of trade flow and clean energy on consumption-based carbon emissions in the Sub-Saharan African countries.

Abstract

Environmental degradation has accelerated rapidly in recent decades. Researchers and policymakers around the world have concentrated their efforts on this phenomenon because of its effect on human beings. Because of the expanding desire for fossil fuels in developed and developing nations, there has been minimal worldwide agreement on how energy consumption and carbon emissions can be reduced in recent years. On the other hand, several nations are implementing steps to adhere to the Paris Climate Agreement, which was signed in 2015. Therefore, this research intends to examine the effect of trade, economic growth, natural resources, clean energy, and urbanization on consumption-based carbon emissions (CCO2) for economies in Sub-Saharan Africa (SSA) from 1990 to 2018. The study employed second-generation techniques including CS-ARDL, which revealed that trade flow, income, natural resources, and urbanization exert a positive impact on CCO2 emissions. Furthermore, the interaction between trade and income contribute to the increase in CCO2 emissions. In addition, clean energy impacts CCO2 emissions negatively. From the causality analysis, it is observed that there is a feedback causality between CCO2 emissions and income, clean energy, and urbanization, while a one-way causality was detected running from natural resources rent to CCO2 emission. These outcomes might help policymakers to adopt measures that are eco-friendly such as the utilization of clean energy in order for countries in Sub-Saharan Africa to attain a green environment.