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The Nexus between Economic Growth, Energy Consumption, and Environmental Degradation in Kenya

Author

Listed:
  • Hassan Abdikadir Hussein

    (Faculty of Management Science, SIMAD University, Mogadishu, Somalia)

  • Abdimalik Ali Warsame

    (Faculty of Economics, SIMAD University, Mogadishu, Somalia)

  • Galad Mohamed Barre

    (Faculty of Management Science, SIMAD University, Mogadishu, Somalia; & Faculty of Economics, SIMAD University, Mogadishu, Somalia.)

  • Mohamed Ahmed Salad

    (Faculty of Economics, SIMAD University, Mogadishu, Somalia.)

Abstract

Energy is a crucial component of productivity and is regarded as an engine for economic growth. In countries where more energy is consumed, the standard of living is frequently higher. Yet utilizing energy also leads to the emission of harmful greenhouse gases like carbon dioxide emissions (CO2) and sulphur dioxide emissions (SO2). In this regard, this study examines the relationship between economic growth, energy consumption, and environmental degradation in Kenya using the Autoregressive Distributed Lag model (ARDL) from 1990 to 2019. The empirical results find that energy consumption and economic growth increase CO2 emissions both in the short- and long-run in Kenya except for economic growth which is inconsequential in the short run. However, the study suggests the implementation of environmental regulations that would contribute in lowering pollution emissions. In addition, implementing policies that encourage investing in cleaner energy sources will reduce environmental pollution. The Kenyan policymakers should undertake various technological, behavioural, and other changes to increase its economy's overall energy efficiency.

Suggested Citation

  • Hassan Abdikadir Hussein & Abdimalik Ali Warsame & Galad Mohamed Barre & Mohamed Ahmed Salad, 2023. "The Nexus between Economic Growth, Energy Consumption, and Environmental Degradation in Kenya," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 220-226, November.
    • Handle: RePEc:eco:journ2:2023-06-24
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    References listed on IDEAS

    as
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    More about this item

    Keywords

    Energy consumption; economic growth; environmental degradation; ARDL; Kenya;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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