Exploring the contribution of energy price to carbon emissions in African countries

Bamanga Umar (), Md. Mahmudul Alam () and Abul Quasem Al-Amin
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Bamanga Umar: Modibbo Adama University of Technology
Abul Quasem Al-Amin: University of Waterloo [Waterloo]

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Abstract: The increasing level of greenhouse gas carbon emission currently exacerbates the devastating effect of global warming on the Earth's ecosystem. Energy usage is one of the most important determinants that is increasing the amount of carbon gases being released. Simultaneously, the level of energy usage is derived by the price and therefore, this study examines the contribution of energy price to carbon gas emissions in thirteen African nations for the period spanning 1990 to 2017. It does this by utilizing the Cross-sectional Dependence (CD), Augmented Mean Group (AMG) and Pooled Mean Group (PMG) panel modelling methods. The findings of the AMG model suggest that a 1% increase in energy price leads to a 0.02% decerease in carbon emission. The results further reveal that a 1% increase in energy intensity and technological innovation lead to 0.04% and 3.65% increase in carbon emission, respectively, in the selected African countries. Findings will help policymakers to implement effective energy price policies to reduce carbon emissions and achieve sustainable development goals especially in the emerging economies of Africa.

Keywords: Africa; Energy price; Carbon emissions; Augmented mean group; Pooled Mean Group (PMG); Cross-sectional Dependence (CD); Sustainable development (search for similar items in EconPapers)
Date: 2021-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-sea
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Published in Environmental Science and Pollution Research, 2021, 28 (2), pp.1973-1982. ⟨10.1007/s11356-020-10641-2⟩

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Working Paper: Exploring the Contribution of Energy Price to Carbon Emissions in African Countries (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03520182

DOI: 10.1007/s11356-020-10641-2

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