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Testing the Relationships between Energy Consumption, CO2 emissions and Economic Growth in 24 African Countries: a Panel ARDL Approach

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  • Simplice Asongu

    () (Yaoundé/Cameroun)

  • Ghassen El Montasser

    () (University of Manouba, Tunisia)

  • Hassen Toumi

    () (University of Sfax, Tunisia)

Abstract

This study complements existing literature by examining the nexus between energy consumption (EC), CO2 emissions (CE) and economic growth (GDP) in 24 African countries using a panel ARDL approach. The following findings are established. First, there is a long run relationship between EC, CE and GDP. Second, a long term effect from CE to GDP and EC is apparent, with reciprocal paths. Third, the error correction mechanisms are consistently stable. However, in cases of disequilibrium only EC can be significantly adjusted to its long run relationship. Fourth, there is a long-run causality running from GDP and CE to EC. Fifth, we find causality running from either CE or both CE and EC to GDP and inverse causal paths are observable. Causality from EC to GDP is not strong, which supports the conservative hypothesis. Sixth, the causal direction from EC to GDP remains unobservable in the short term. By contrast, the opposite path is observable. There are also no short-run causalities from GDP, or EC, or EC and GDP to EC. Policy implications are discussed.

Suggested Citation

  • Simplice Asongu & Ghassen El Montasser & Hassen Toumi, 2015. "Testing the Relationships between Energy Consumption, CO2 emissions and Economic Growth in 24 African Countries: a Panel ARDL Approach," Working Papers of the African Governance and Development Institute. 15/037, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:15/037
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    References listed on IDEAS

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    Cited by:

    1. Simplice A. Asongu, 2017. "ICT, Openness and CO2 emissions in Africa," Research Africa Network Working Papers 17/055, Research Africa Network (RAN).
    2. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Environmental degradation and inclusive human development in sub‐Saharan Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(1), pages 25-34, January.
    3. Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "Governance,CO2 emissions and inclusive human development in Sub-Saharan Africa," Working Papers 25253, University of South Africa, Department of Economics.
    4. Simplice A. Asongu, 2018. "CO2 emission thresholds for inclusive human development in Sub-Saharan Africa," Research Africa Network Working Papers 18/023, Research Africa Network (RAN).
    5. Meniago, Christelle & Asongu, Simplice A., 2018. "Revisiting the finance-inequality nexus in a panel of African countries," Research in International Business and Finance, Elsevier, vol. 46(C), pages 399-419.
    6. Simplice A. Asongu & Sara le Roux & Nicholas Biekpe, 2017. "Environmental Degradation, ICT and Inclusive Development in Sub-Saharan Africa," Research Africa Network Working Papers 17/038, Research Africa Network (RAN).
    7. Asongu, Simplice A. & Le Roux, Sara & Biekpe, Nicholas, 2017. "Environmental degradation, ICT and inclusive development in Sub-Saharan Africa," Energy Policy, Elsevier, vol. 111(C), pages 353-361.
    8. repec:wly:sustdv:v:26:y:2018:i:6:p:638-651 is not listed on IDEAS
    9. repec:gam:jsusta:v:11:y:2019:i:5:p:1348-:d:210845 is not listed on IDEAS
    10. Simplice A. Asongu & Jacinta C. Nwachukwu & Chris Pyke, 2019. "The Comparative Economics of ICT, Environmental Degradation and Inclusive Human Development in Sub-Saharan Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 1271-1297, June.
    11. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Mobile Phone Innovation and Environmental Sustainability in Sub-Saharan Africa," Research Africa Network Working Papers 17/025, Research Africa Network (RAN).
    12. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Environmental degradation and inclusive human development in sub‐Saharan Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(1), pages 25-34, January.
    13. repec:spr:nathaz:v:87:y:2017:i:2:d:10.1007_s11069-017-2799-1 is not listed on IDEAS
    14. Simplice A. Asongu & Sara le Roux & Nicholas Biekpe, 2017. "Enhancing ICT for Environmental Sustainability in Sub-Saharan Africa," Research Africa Network Working Papers 17/039, Research Africa Network (RAN).
    15. Simplice A. Asongu, 2018. "Comparative sustainable development in sub‐Saharan Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 26(6), pages 638-651, November.
    16. Simplice A. Asongu & Nicholas M. Odhiambo, 2018. "Environmental Degradation and Inclusive Human Development in sub†Saharan Africa," AFEA Working Papers 18/015, African Finance and Economic Association (AFEA).
    17. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Economic Development Thresholds for a Green Economy in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 19/010, African Governance and Development Institute..
    18. Asongu, Simplice A. & Le Roux, Sara & Biekpe, Nicholas, 2018. "Enhancing ICT for environmental sustainability in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 209-216.
    19. Alexis Vessat, 2016. "Energy Consumption-Economic Growth nexus in Sub-Saharan Countries: what can we learn from a meta-analysis? (1996-2016)," Post-Print hal-01944514, HAL.
    20. repec:gam:jsusta:v:10:y:2018:i:9:p:3110-:d:166872 is not listed on IDEAS
    21. Ishmael Ackah, 2016. "Policy interventions in renewable energy for sustainable development: is Ghana on the right path to achieve SDG 7?," Working Papers of the African Governance and Development Institute. 16/013, African Governance and Development Institute..

    More about this item

    Keywords

    Energy consumption; CO2 emissions; Economic growth; Africa;

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • 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
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General

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