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Fossil Fuel Energy Consumption, Economic Growth, Urbanization, and Carbon Dioxide Emissions in Kenya

Author

Listed:
  • Jacob Otim

    (Kyambogo University, Uganda,)

  • Susan Watundu

    (Makerere University Business School, Uganda,)

  • John Mutenyo

    (College of Business and Management Sciences, Makerere University, Economic Analysis and Policy, Uganda,)

  • Vincent Bagire

    (Department of Management Science, Makerere University Business School, Uganda.)

Abstract

The increase in the level of CO2 emissions has triggered the global temperature to rise above the pre industrial levels. The unprecedented climate change has resulted in flooding and droughts that have displaced millions of people from their homes, plunged them into poverty, famine, and stunted economic growth, especially in countries with shoddy infrastructure. The large-scale use of fossil fuels across the globe, increase in urbanization and economic growth are likely to worsen the environmental quality. However, the proponents of the economic growth hypothesis do not admit that the consumption of fossil fuels and urban expansion, increase the level of CO2 emissions in the atmosphere. The current study examines the effects of fossil fuels consumption, economic growth, urbanization and CO2 emissions in Kenya over the period 1971 to 2014. The study follows a formal time series econometric estimation strategy and estimates the long-run model using an autoregressive distributed lag. The study findings show that economic growth and the uptake of fossil fuels increase CO2 emission, while urbanization reduces it. The study recommends phasing out subsidies for conventional energy supply, promoting energy efficiency and accelerating the development of clean energy technologies.

Suggested Citation

  • Jacob Otim & Susan Watundu & John Mutenyo & Vincent Bagire, 2023. "Fossil Fuel Energy Consumption, Economic Growth, Urbanization, and Carbon Dioxide Emissions in Kenya," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 457-468, May.
  • Handle: RePEc:eco:journ2:2023-03-50
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    More about this item

    Keywords

    CO2 emissions; fossil fuel energy consumption; economic growth; Cointegration; Granger causality; Kenya;
    All these keywords.

    JEL classification:

    • K32 - Law and Economics - - Other Substantive Areas of Law - - - Energy, Environmental, Health, and Safety Law
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q35 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Hydrocarbon Resources
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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