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Asymmetric Nexus Between Industrial Production and Carbon Emissions: Empirics from Sub-Saharan Africa

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  • Abdallah Abdul-Mumuni
  • John Kwaku Amoh
  • Abubakar Musah

Abstract

While previous panel studies have focused on the linear specifications of the industrial production-carbon emissions nexus, nonlinear panel studies on this relationship remain thin on the ground. This article examines the asymmetric nexus between industrial production and carbon emissions in 30 selected Sub-Saharan African countries spanning from 1990 to 2019. In the presence of cross-sectional dependence, the second-generation unit root tests were applied to examine the unit-root properties. The cointegration tests results confirm the presence of a long-run relationship among the variables. Finally, we employed the panel nonlinear autoregressive distributed lag approach to estimate the coefficient values. Generally, the empirical findings demonstrate that industrial production asymmetrically influences carbon emissions both in the short and long-runs. Specifically, the long-run estimates indicate that a positive shock in industrial production of 1% induces an increase in carbon emissions by 0.213%, while a negative shock induces a 0.390% decrease in carbon emissions. Based on these results, there is a need for policymakers in the selected Sub-Saharan African countries to consider the asymmetric behavior of industrial production while formulating industrialization policies. These policies should also be based on the condition of adopting green technology forms of energy. JEL Classification O14, Q5, Q54

Suggested Citation

  • Abdallah Abdul-Mumuni & John Kwaku Amoh & Abubakar Musah, 2024. "Asymmetric Nexus Between Industrial Production and Carbon Emissions: Empirics from Sub-Saharan Africa," Global Journal of Emerging Market Economies, Emerging Markets Forum, vol. 16(3), pages 392-410, September.
  • Handle: RePEc:sae:emeeco:v:16:y:2024:i:3:p:392-410
    DOI: 10.1177/09749101241238643
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    JEL classification:

    • O14 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Industrialization; Manufacturing and Service Industries; Choice of Technology
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming

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