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Industrialization and CO 2 Emissions in Sub-Saharan Africa: The Mitigating Role of Renewable Electricity

Author

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  • Urszula Mentel

    (Department of Projects Management and Security Policy, Faculty of Management, Rzeszow University of Technology, 35-959 Rzeszow, Poland)

  • Elżbieta Wolanin

    (Department of Quantitative Methods, Faculty of Management, Rzeszow University of Technology, 35-959 Rzeszow, Poland)

  • Mansur Eshov

    (Department of Academic Affairs, Tashkent State University of Economics, Islam Karimov Street 49, Tashkent 100066, Uzbekistan)

  • Raufhon Salahodjaev

    (Department of Academic Affairs, Tashkent State University of Economics, Islam Karimov Street 49, Tashkent 100066, Uzbekistan)

Abstract

This study aims to explore the relationship between industry value added, renewable energy, and CO 2 emissions in a sample of 44 Sub-Saharan African countries over the period 2000–2015. This study makes several important contributions to extant research. While existing research was focused on the renewable energy-CO 2 emissions nexus, the current study assesses the moderating role of the renewables sector in the industrialization-CO2 emissions relationship. In addition, this study considers whether EKC relationships will hold after accounting for structural transformations (including industrial contributions to GDPs). Moreover, we are revising the existence of the EKC framework for the Sub-Saharan African countries. Using a two-step system GMM estimator, we found that the share of industry in GDP has a significant positive impact on CO 2 emissions, while renewable electricity output reduces CO 2 emissions. If causal, a one percentage point increase in renewable electricity output reduces carbon emissions by 0.22%. Moreover, the renewable energy sector then mediates the positive effect of industry value added on CO 2 emissions. We also find evidence for the statistical significance of the inverted U-shaped relationship between GDP per capita and CO 2 emissions.

Suggested Citation

  • Urszula Mentel & Elżbieta Wolanin & Mansur Eshov & Raufhon Salahodjaev, 2022. "Industrialization and CO 2 Emissions in Sub-Saharan Africa: The Mitigating Role of Renewable Electricity," Energies, MDPI, vol. 15(3), pages 1-12, January.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:3:p:946-:d:736285
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    References listed on IDEAS

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    8. Saboori, Behnaz & Sulaiman, Jamalludin & Mohd, Saidatulakmal, 2012. "Economic growth and CO2 emissions in Malaysia: A cointegration analysis of the Environmental Kuznets Curve," Energy Policy, Elsevier, vol. 51(C), pages 184-191.
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    3. Abbas, Jawad & Wang, Lisu & Ben Belgacem, Samira & Pawar, Puja Sunil & Najam, Hina & Abbas, Jaffar, 2023. "Investment in renewable energy and electricity output: Role of green finance, environmental tax, and geopolitical risk: Empirical evidence from China," Energy, Elsevier, vol. 269(C).
    4. Rahman, Mohammad Mafizur & Alam, Khosrul, 2022. "Impact of industrialization and non-renewable energy on environmental pollution in Australia: Do renewable energy and financial development play a mitigating role?," Renewable Energy, Elsevier, vol. 195(C), pages 203-213.
    5. Bashir, Muhammad Adnan & Dengfeng, Zhao & Amin, Fouzia & Mentel, Grzegorz & Raza, Syed Ali & Bashir, Muhammad Farhan, 2023. "Transition to greener electricity and resource use impact on environmental quality: Policy based study from OECD countries," Utilities Policy, Elsevier, vol. 81(C).
    6. Kirikkaleli, Dervis, 2023. "Resource efficiency, energy productivity, and environmental quality in Japan," Resources Policy, Elsevier, vol. 85(PB).
    7. Ayad, Hicham & Abbas, Shujaat & Nakhli, Mohamed Sahbi & Jibir, Adamu & Shahzad, Umer, 2023. "Industrial growth, health care policy uncertainty and carbon emissions: Do trade and tax policy uncertainties matter for sustainable development in the USA?," Structural Change and Economic Dynamics, Elsevier, vol. 66(C), pages 151-160.
    8. Ali, Uzair & Guo, Qingbin & Nurgazina, Zhanar & Sharif, Arshian & Kartal, Mustafa Tevfik & Kılıç Depren, Serpil & Khan, Aftab, 2023. "Heterogeneous impact of industrialization, foreign direct investments, and technological innovation on carbon emissions intensity: Evidence from Kingdom of Saudi Arabia," Applied Energy, Elsevier, vol. 336(C).
    9. Gao, Chunjiao & Chen, Hongxi, 2023. "Electricity from renewable energy resources: Sustainable energy transition and emissions for developed economies," Utilities Policy, Elsevier, vol. 82(C).
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