How do output, trade, renewable energy and non-renewable energy impact carbon emissions in selected Sub-Saharan African Countries?

Abstract

Harmful effects of fossil fuels on environment and probability of extinction of these reserves cause to search alternative energy resources. Renewable energy use appears as the leading applicable solution in preventing climate change and global warming. The objective of this study is to quantify the relationship between output, renewable energy, non-renewable energy, trade and carbon dioxide (CO2) emissions for eight Sub-Saharan African countries during the 1980-2014 period with second generation panel cointegration methods. Cointegration between the analyzed variables is established by Pedroni test and Westerlund (2007) error correction based panel test. The long run empirical findings reveal that, non renewable energy and trade have important role in increasing carbon emissions while renewable energy mitigates CO2 emissions. Environmental Kuznets Curve (EKC) hypothesis is supported for the selected countries and the time span. The policy implications of the results are also discussed.