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 inThe Science of the total environment Vol. 677; pp. 436 - 446
Main Authors Acheampong, Alex O., Adams, Samuel, Boateng, Elliot
Format Journal Article
LanguageEnglish
Published Netherlands Elsevier B.V 10.08.2019
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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. [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.
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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Snippet This study examines the impact of globalisation (measured in terms of foreign direct investment and trade openness), and renewable energy on carbon emissions...
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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?
URI https://dx.doi.org/10.1016/j.scitotenv.2019.04.353
https://www.ncbi.nlm.nih.gov/pubmed/31059886
https://www.proquest.com/docview/2231906064
https://www.proquest.com/docview/2253235609
Volume 677
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