The link between carbon emissions, renewable energy consumption, and economic growth: a heterogeneous panel evidence from West Africa

Musah, Mohammed; Kong, Yusheng; Mensah, Isaac Adjei; Antwi, Stephen Kwadwo; Donkor, Mary

The link between carbon emissions, renewable energy consumption, and economic growth: a heterogeneous panel evidence from West Africa

2020

Musah, Mohammed | Kong, Yusheng | Mensah, Isaac Adjei | Antwi, Stephen Kwadwo | Donkor, Mary

This study examined the nexus between carbon emissions, renewable energy consumption, and the economic growth of West African countries for the period 1990 to 2018. To be able to uncover reliable and valid findings, more robust panel estimation methods were employed for the study. From the heterogeneity and cross-sectional dependence tests, the study’s panels were heterogeneous and cross-sectionally dependent. Also, all the series were non-stationary at levels, but gained stationarity after first difference. Further, the Fisher test and the Westerlund and Edgerton bootstrap test found the variables to be cointegrated in the long run. The CCEMG and the DCCEMG estimators were used to explore the long-run equilibrium relationship amid the series, and from the results of the whole sample, CO₂ emissions and renewable energy consumption (REC) had no vital influence on economic growth (GDP) in both estimators. However, the results were a bit different in the sub-panels. Also from the whole sample, control variables urbanization (URB) and population growth (POP) had no material effect on GDP in both estimators. The results were, however, dissimilar in the sub-panels. Finally, the Dumitrescu-Hurlin test was employed to examine the causalities amid the series, and the results were diverse in the various panels. Policy recommendations are further discussed.

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