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Impact of international trade, energy consumption and income on environmental degradation in Africa's OPEC member countries

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  • Paul Terhemba Iorember
  • Solomon Gbaka
  • Gylych Jelilov
  • Nargiza Alymkulova
  • Ojonugwa Usman

Abstract

The huge endowment, exploitation and trading of carbon content energy resources by the African OPEC member countries for economic expansion substantiate the fears of increasing global warming and environmental degradation. This study explores the dynamic effects of trade flows, energy consumption and per capita income on environmental degradation in seven of Africa's OPEC member countries (Algeria, Angola, Congo, Equatorial Guinea, Gabon, Libya and Nigeria), within the framework of the environmental Kuznets curve (EKC) and the pollution haven hypothesis (PHH). By employing the bootstrap panel cointegration test and the PMG/ARDL estimation technique on panel data spanning from 1990 to 2017, the empirical results show a positive but insignificant effect of trade flows on environmental degradation. The results further show that while renewable energy dampens environmental degradation, non‐renewable energy exerts upward pressure on environmental degradation. In addition, the results provide evidence in support of a U‐shaped EKC in the long run. The study, therefore, recommends the expansion of renewable energy consumption to ensure not only environmental sustainability but also to attain the regional goal of sustainable development.

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  • Paul Terhemba Iorember & Solomon Gbaka & Gylych Jelilov & Nargiza Alymkulova & Ojonugwa Usman, 2022. "Impact of international trade, energy consumption and income on environmental degradation in Africa's OPEC member countries," African Development Review, African Development Bank, vol. 34(2), pages 175-187, June.
    • Handle: RePEc:bla:afrdev:v:34:y:2022:i:2:p:175-187
    DOI: 10.1111/1467-8268.12629
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    2. Paul Terhemba Iorember & Nora Yusma Mohamed Yusoff, 2023. "Income–environmental nexus in Africa: The integrating role of renewable energy transition and governance quality," African Development Review, African Development Bank, vol. 35(4), pages 376-389, December.
    3. Balcilar, Mehmet & Usman, Ojonugwa & Ike, George N., 2023. "Operational behaviours of multinational corporations, renewable energy transition, and environmental sustainability in Africa: Does the level of natural resource rents matter?," Resources Policy, Elsevier, vol. 81(C).
    4. Ozkan, Oktay & Haruna, Roselyn Afor & ALOLA, Andrew Adewale & Ghardallou, Wafa & Usman, Ojonugwa, 2023. "Investigating the nexus between economic complexity and energy-related environmental risks in the USA: Empirical evidence from a novel multivariate quantile-on-quantile regression," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 382-392.
    5. Abdulkadir Abdulrashid Rafindadi & Isah Buhari Aliyu & Ojonugwa Usman, 2022. "Revisiting the electricity consumption-led growth hypothesis: is the rule defied in France?," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 11(1), pages 1-23, December.

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