Do globalization and renewable energy contribute to carbon emissions mitigation in Sub-Saharan Africa?
This study examines the impact of globalisation (measured in terms of foreign direct investment and trade openness), and renewable energy on carbon emissions using 46 sub-Saharan African countries for the period 1980–2015. Using fixed and random effect estimation techniques, the study found that ren...
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Published in | The Science of the total environment Vol. 677; pp. 436 - 446 |
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Main Authors | , , |
Format | Journal Article |
Language | English |
Published |
Netherlands
Elsevier B.V
10.08.2019
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Subjects | |
Online Access | Get full text |
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Abstract | This study examines the impact of globalisation (measured in terms of foreign direct investment and trade openness), and renewable energy on carbon emissions using 46 sub-Saharan African countries for the period 1980–2015. Using fixed and random effect estimation techniques, the study found that renewable energy and foreign direct investment contribute to the reduction of carbon emissions while trade openness deteriorates the environment. It was also found that population growth and financial development contribute to the increase in carbon emissions. The study found evidence for Environmental Kuznets curve hypothesis. Our results revealed that institutional quality measured using regulation has a less pronounced effect for reducing carbon emissions. However, regulation moderates economic growth and foreign direct investment to reduce carbon emissions. These results are robust to alternative estimators such as the instrumental variable generalised method of moment and dynamic fixed effect estimators. The study further demonstrated that there are variations in the results among the regions within sub-Saharan Africa. The policy implications of the paper are discussed.
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•Investigate the impact of trade, FDI and renewable energy on CO2 emissions.•Renewable energy reduces carbon emissions.•FDI contributes to carbon emissions mitigation.•Trade increases carbon emissions.•EKC hypothesis is supported. |
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AbstractList | This study examines the impact of globalisation (measured in terms of foreign direct investment and trade openness), and renewable energy on carbon emissions using 46 sub-Saharan African countries for the period 1980–2015. Using fixed and random effect estimation techniques, the study found that renewable energy and foreign direct investment contribute to the reduction of carbon emissions while trade openness deteriorates the environment. It was also found that population growth and financial development contribute to the increase in carbon emissions. The study found evidence for Environmental Kuznets curve hypothesis. Our results revealed that institutional quality measured using regulation has a less pronounced effect for reducing carbon emissions. However, regulation moderates economic growth and foreign direct investment to reduce carbon emissions. These results are robust to alternative estimators such as the instrumental variable generalised method of moment and dynamic fixed effect estimators. The study further demonstrated that there are variations in the results among the regions within sub-Saharan Africa. The policy implications of the paper are discussed.
[Display omitted]
•Investigate the impact of trade, FDI and renewable energy on CO2 emissions.•Renewable energy reduces carbon emissions.•FDI contributes to carbon emissions mitigation.•Trade increases carbon emissions.•EKC hypothesis is supported. This study examines the impact of globalisation (measured in terms of foreign direct investment and trade openness), and renewable energy on carbon emissions using 46 sub-Saharan African countries for the period 1980-2015. Using fixed and random effect estimation techniques, the study found that renewable energy and foreign direct investment contribute to the reduction of carbon emissions while trade openness deteriorates the environment. It was also found that population growth and financial development contribute to the increase in carbon emissions. The study found evidence for Environmental Kuznets curve hypothesis. Our results revealed that institutional quality measured using regulation has a less pronounced effect for reducing carbon emissions. However, regulation moderates economic growth and foreign direct investment to reduce carbon emissions. These results are robust to alternative estimators such as the instrumental variable generalised method of moment and dynamic fixed effect estimators. The study further demonstrated that there are variations in the results among the regions within sub-Saharan Africa. The policy implications of the paper are discussed.This study examines the impact of globalisation (measured in terms of foreign direct investment and trade openness), and renewable energy on carbon emissions using 46 sub-Saharan African countries for the period 1980-2015. Using fixed and random effect estimation techniques, the study found that renewable energy and foreign direct investment contribute to the reduction of carbon emissions while trade openness deteriorates the environment. It was also found that population growth and financial development contribute to the increase in carbon emissions. The study found evidence for Environmental Kuznets curve hypothesis. Our results revealed that institutional quality measured using regulation has a less pronounced effect for reducing carbon emissions. However, regulation moderates economic growth and foreign direct investment to reduce carbon emissions. These results are robust to alternative estimators such as the instrumental variable generalised method of moment and dynamic fixed effect estimators. The study further demonstrated that there are variations in the results among the regions within sub-Saharan Africa. The policy implications of the paper are discussed. This study examines the impact of globalisation (measured in terms of foreign direct investment and trade openness), and renewable energy on carbon emissions using 46 sub-Saharan African countries for the period 1980-2015. Using fixed and random effect estimation techniques, the study found that renewable energy and foreign direct investment contribute to the reduction of carbon emissions while trade openness deteriorates the environment. It was also found that population growth and financial development contribute to the increase in carbon emissions. The study found evidence for Environmental Kuznets curve hypothesis. Our results revealed that institutional quality measured using regulation has a less pronounced effect for reducing carbon emissions. However, regulation moderates economic growth and foreign direct investment to reduce carbon emissions. These results are robust to alternative estimators such as the instrumental variable generalised method of moment and dynamic fixed effect estimators. The study further demonstrated that there are variations in the results among the regions within sub-Saharan Africa. The policy implications of the paper are discussed. |
Author | Acheampong, Alex O. Adams, Samuel Boateng, Elliot |
Author_xml | – sequence: 1 givenname: Alex O. surname: Acheampong fullname: Acheampong, Alex O. email: alex.acheampong@uon.edu.au organization: Newcastle Business School, University of Newcastle, Australia – sequence: 2 givenname: Samuel surname: Adams fullname: Adams, Samuel email: sadams@gimpa.edu.gh organization: School of Public Service and Governance, Ghana Institute of Management and Public Administration, Ghana – sequence: 3 givenname: Elliot orcidid: 0000-0003-1949-0188 surname: Boateng fullname: Boateng, Elliot email: elliot.boateng@uon.edu.au organization: Newcastle Business School, University of Newcastle, Australia |
BackLink | https://www.ncbi.nlm.nih.gov/pubmed/31059886$$D View this record in MEDLINE/PubMed |
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SubjectTerms | carbon Carbon emissions economic development emissions environmental Kuznets curve FDI foreign direct investment globalization issues and policy population growth Regulation Renewable energy renewable energy sources Sub-Saharan Africa Trade |
Title | Do globalization and renewable energy contribute to carbon emissions mitigation in Sub-Saharan Africa? |
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