IDEAS home Printed from https://ideas.repec.org/p/exe/wpaper/2308.html
   My bibliography  Save this paper

Heterogeneous and time varying nexus between climate change and quality of life in Africa

Author

Listed:
  • Rilwan Sakariyahu

    (Business School, Edinburgh Napier University)

  • Olayinka Oyekola

    (Department of Economics, University of Exeter)

  • Rasheed Adigun

    (JPMorgan Chase)

  • Temitope Fagbemi

    (Aberdeen Business School, Robert Gordon University)

  • Oluwagbenga Seyingbo

    (Business School, University of Winchester)

  • Rodiat Lawal

    (School of Oriental and African Studies, University of London)

Abstract

Climate change, one of the world's existential problems, has sparked widespread concern at national and multinational levels. In this study, we deviate from the existing scores of academic literature by investigating heterogenous and time-varying effects of climate change on quality of life at the continent and regional levels in Africa. Towards this end, we utilise carbon emissions and ecological footprint as our climate change variables and human development index to proxy quality of life for 31 African countries over the period 2000 to 2018. Several econometric techniques are then employed to account for cross-sectional dependence, panel unit root, long-term cointegration with structural break, and heterogeneous panel causality, whilst we also present results based on Bayesian panel VAR impulse response functions. The results indicate cross-sectional dependence due to spill-over effects from common factors in Africa, while the panel cointegration test affirms that climate change variables have long-term consequences for quality of life only in sub-Saharan African region. Moreover, our results reveal a uni-directional causality between climate change variables and quality of life at both the continent and sub-Saharan African region levels. However, the test shows a bi-directional causality between these variables in North Africa. This differential impacts of climate change variables on quality of life between Northern and sub-Saharan Africa suggests that policy initiatives toward mitigating the effects of climate crises should consider regional dynamics of the continent.

Suggested Citation

  • Rilwan Sakariyahu & Olayinka Oyekola & Rasheed Adigun & Temitope Fagbemi & Oluwagbenga Seyingbo & Rodiat Lawal, 2023. "Heterogeneous and time varying nexus between climate change and quality of life in Africa," Discussion Papers 2308, University of Exeter, Department of Economics.
  • Handle: RePEc:exe:wpaper:2308
    as

    Download full text from publisher

    File URL: https://exetereconomics.github.io/RePEc/dpapers/DP2308.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arthur Lewbel, 2012. "Using Heteroscedasticity to Identify and Estimate Mismeasured and Endogenous Regressor Models," Journal of Business & Economic Statistics, Taylor & Francis Journals, vol. 30(1), pages 67-80.
    2. Śmiech, Sławomir & Papież, Monika, 2014. "Energy consumption and economic growth in the light of meeting the targets of energy policy in the EU: The bootstrap panel Granger causality approach," Energy Policy, Elsevier, vol. 71(C), pages 118-129.
    3. Ranson, Matthew, 2014. "Crime, weather, and climate change," Journal of Environmental Economics and Management, Elsevier, vol. 67(3), pages 274-302.
    4. Myriam N. Bechtoldt & Alexander Götmann & Ulf Moslener & W. Pieter Pauw, 2021. "Addressing the climate change adaptation puzzle: a psychological science perspective," Climate Policy, Taylor & Francis Journals, vol. 21(2), pages 186-202, February.
    5. Joakim Westerlund, 2006. "Testing for Panel Cointegration with Multiple Structural Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(1), pages 101-132, February.
    6. Wang, Mengmeng & Zhou, Tao, 2023. "Does smart city implementation improve the subjective quality of life? Evidence from China," Technology in Society, Elsevier, vol. 72(C).
    7. M. Joseph Sirgy & Alex C. Michalos & Abbott L. Ferriss & Richard A. Easterlin & Donald Patrick & William Pavot, 2006. "The Quality-of-Life (QOL) Research Movement: Past, Present, and Future," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 76(3), pages 343-466, May.
    8. Joakim Westerlund & David L. Edgerton, 2008. "A Simple Test for Cointegration in Dependent Panels with Structural Breaks," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 70(5), pages 665-704, October.
    9. Ibrahim, Ridwan Lanre & Ajide, Kazeem Bello & Omokanmi, Olatunde Julius, 2021. "Non-renewable energy consumption and quality of life: Evidence from Sub-Saharan African economies," Resources Policy, Elsevier, vol. 73(C).
    10. Scott Cloutier & Lincoln Larson & Jenna Jambeck, 2014. "Are sustainable cities “happy” cities? Associations between sustainable development and human well-being in urban areas of the United States," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 16(3), pages 633-647, June.
    11. Kaddour Hadri, 2000. "Testing for stationarity in heterogeneous panel data," Econometrics Journal, Royal Economic Society, vol. 3(2), pages 148-161.
    12. M. Sirgy & Alex Michalos & Abbott Ferriss & Richard Easterlin & Donald Patrick & William Pavot, 2006. "The Qualityity-of-Life (QOL) Research Movement: Past, Present, and Future," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 76(3), pages 343-466, May.
    13. Abeysekara, Walimuni Chamindri Sewanka Mendis & Siriwardana, Mahinda & Meng, Samuel, 2023. "Economic consequences of climate change impacts on the agricultural sector of South Asia: A case study of Sri Lanka," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 435-450.
    14. Costanza, Robert & Fisher, Brendan & Ali, Saleem & Beer, Caroline & Bond, Lynne & Boumans, Roelof & Danigelis, Nicholas L. & Dickinson, Jennifer & Elliott, Carolyn & Farley, Joshua & Gayer, Diane Elli, 2007. "Quality of life: An approach integrating opportunities, human needs, and subjective well-being," Ecological Economics, Elsevier, vol. 61(2-3), pages 267-276, March.
    15. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    16. Joakim Westerlund, 2007. "Testing for Error Correction in Panel Data," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 709-748, December.
    17. Mehmet Pinar & Thanasis Stengos & Nikolas Topaloglou, 2022. "Stochastic dominance spanning and augmenting the human development index with institutional quality," Annals of Operations Research, Springer, vol. 315(1), pages 341-369, August.
    18. Sheng, Xin & Gupta, Rangan & Çepni, Oğuzhan, 2022. "The effects of climate risks on economic activity in a panel of US states: The role of uncertainty," Economics Letters, Elsevier, vol. 213(C).
    19. Dumitrescu, Elena-Ivona & Hurlin, Christophe, 2012. "Testing for Granger non-causality in heterogeneous panels," Economic Modelling, Elsevier, vol. 29(4), pages 1450-1460.
    20. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    21. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    22. Mr. Adil Mohommad & Evgenia Pugacheva, 2022. "Impact of COVID-19 on Attitudes to Climate Change and Support for Climate Policies," IMF Working Papers 2022/023, International Monetary Fund.
    23. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    24. Christopher L. Ambrey & Peter Daniels, 2017. "Happiness and footprints: assessing the relationship between individual well-being and carbon footprints," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 19(3), pages 895-920, June.
    25. Yijian Liu & Chaoqun Zhou & Lin Li & Liang Su & Yuanbiao Zhang, 2018. "Fragile States Metric System: An Assessment Model Considering Climate Change," Sustainability, MDPI, vol. 10(6), pages 1-29, May.
    26. David Albouy & Walter Graf & Ryan Kellogg & Hendrik Wolff, 2016. "Climate Amenities, Climate Change, and American Quality of Life," Journal of the Association of Environmental and Resource Economists, University of Chicago Press, vol. 3(1), pages 205-246.
    27. Francesco Bosello & Robert Nicholls & Julie Richards & Roberto Roson & Richard Tol, 2012. "Economic impacts of climate change in Europe: sea-level rise," Climatic Change, Springer, vol. 112(1), pages 63-81, May.
    28. Elisabeth A. Lloyd & Theodore G. Shepherd, 2021. "Climate change attribution and legal contexts: evidence and the role of storylines," Climatic Change, Springer, vol. 167(3), pages 1-13, August.
    29. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2017. "The Impact of Terrorism on Governance in African Countries," World Development, Elsevier, vol. 99(C), pages 253-270.
    30. Avom, Désiré & Nkengfack, Hilaire & Fotio, Hervé Kaffo & Totouom, Armand, 2020. "ICT and environmental quality in Sub-Saharan Africa: Effects and transmission channels," Technological Forecasting and Social Change, Elsevier, vol. 155(C).
    31. Comunale, Mariarosaria, 2022. "A panel VAR analysis of macro-financial imbalances in the EU," Journal of International Money and Finance, Elsevier, vol. 121(C).
    32. S. Nazrul Islam & John Winkel, 2017. "Climate Change and Social Inequality," Working Papers 152, United Nations, Department of Economics and Social Affairs.
    33. Opoku, Eric Evans Osei & Dogah, Kingsley E. & Aluko, Olufemi Adewale, 2022. "The contribution of human development towards environmental sustainability," Energy Economics, Elsevier, vol. 106(C).
    34. Aluko, Olufemi Adewale & Opoku, Eric Evans Osei, 2022. "The financial development impact of financial globalization revisited: A focus on OECD countries," International Economics, Elsevier, vol. 169(C), pages 13-29.
    35. Jahedi, Salar & Méndez, Fabio, 2014. "On the advantages and disadvantages of subjective measures," Journal of Economic Behavior & Organization, Elsevier, vol. 98(C), pages 97-114.
    36. Wreford, Anita & Topp, Cairistiona F.E., 2020. "Impacts of climate change on livestock and possible adaptations: A case study of the United Kingdom," Agricultural Systems, Elsevier, vol. 178(C).
    37. António Afonso & João Tovar Jalles, 2015. "How Does Fiscal Policy Affect Investment? Evidence from a Large Panel," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 20(4), pages 310-327, October.
    38. Lof, Matthijs & Malinen, Tuomas, 2014. "Does sovereign debt weaken economic growth? A panel VAR analysis," Economics Letters, Elsevier, vol. 122(3), pages 403-407.
    39. Simone Ghislandi & Warren C. Sanderson & Sergei Scherbov, 2019. "A Simple Measure of Human Development: The Human Life Indicator," Population and Development Review, The Population Council, Inc., vol. 45(1), pages 219-233, March.
    40. Pata, Ugur Korkut, 2021. "Linking renewable energy, globalization, agriculture, CO2 emissions and ecological footprint in BRIC countries: A sustainability perspective," Renewable Energy, Elsevier, vol. 173(C), pages 197-208.
    41. Marc Helbling & Daniel Auer & Daniel Meierrieks & Malcolm Mistry & Max Schaub, 2021. "Climate change literacy and migration potential: micro-level evidence from Africa," Climatic Change, Springer, vol. 169(1), pages 1-13, November.
    42. Hussain, Muzzammil & Wang, Wei & Wang, Yiwen, 2022. "Natural resources, consumer prices and financial development in China: Measures to control carbon emissions and ecological footprints," Resources Policy, Elsevier, vol. 78(C).
    43. Heinz-Herbert Noll, 2013. "Subjective Social Indicators: Benefits and Limitations for Policy Making—An Introduction to this Special Issue," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 114(1), pages 1-11, October.
    44. Menyah, Kojo & Nazlioglu, Saban & Wolde-Rufael, Yemane, 2014. "Financial development, trade openness and economic growth in African countries: New insights from a panel causality approach," Economic Modelling, Elsevier, vol. 37(C), pages 386-394.
    45. Vito Telesca & Aime Lay-Ekuakille & Maria Ragosta & Giuseppina Anna Giorgio & Boniface Lumpungu, 2018. "Effects on Public Health of Heat Waves to Improve the Urban Quality of Life," Sustainability, MDPI, vol. 10(4), pages 1-16, April.
    46. Miyuki Hino & Christopher B. Field & Katharine J. Mach, 2017. "Managed retreat as a response to natural hazard risk," Nature Climate Change, Nature, vol. 7(5), pages 364-370, May.
    47. Boris Nikolaev, 2014. "Economic Freedom and Quality of Life: Evidence from the OECD’s Your Better Life Index," Journal of Private Enterprise, The Association of Private Enterprise Education, vol. 29(Fall 2014), pages 61-96.
    48. Theodore G. Shepherd, 2021. "Bringing physical reasoning into statistical practice in climate-change science," Climatic Change, Springer, vol. 169(1), pages 1-19, November.
    49. Li Yang & Sumaiya Bashiru Danwana & Fadilul-lah Yassaanah Issahaku, 2022. "Achieving Environmental Sustainability in Africa: The Role of Renewable Energy Consumption, Natural Resources, and Government Effectiveness—Evidence from Symmetric and Asymmetric ARDL Models," IJERPH, MDPI, vol. 19(13), pages 1-26, June.
    50. Ansari, Mohd Arshad, 2022. "Re-visiting the Environmental Kuznets curve for ASEAN: A comparison between ecological footprint and carbon dioxide emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    51. Olufemi Adewale Aluko & Eric Evans Osei Opoku, 2022. "The financial development impact of financial globalization revisited: A focus on OECD countries," International Economics, CEPII research center, issue 169, pages 13-29.
    52. Hickel, Jason, 2020. "The sustainable development index: Measuring the ecological efficiency of human development in the anthropocene," Ecological Economics, Elsevier, vol. 167(C).
    53. Kim S. Alexander & Anthony Ryan & Thomas G. Measham, 2012. "Managed retreat of coastal communities: understanding responses to projected sea level rise," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 55(4), pages 409-433, June.
    54. Shahbaz, Muhammad & Sarwar, Suleman & Chen, Wei & Malik, Muhammad Nasir, 2017. "Dynamics of electricity consumption, oil price and economic growth: Global perspective," Energy Policy, Elsevier, vol. 108(C), pages 256-270.
    55. Manfred Lenzen & Robert A. Cummins, 2013. "Happiness versus the Environment—A Case Study of Australian Lifestyles," Challenges, MDPI, vol. 4(1), pages 1-19, May.
    56. Westerlund, Joakim, 2006. "Testing for panel cointegration with a level break," Economics Letters, Elsevier, vol. 91(1), pages 27-33, April.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Tiwari, Aviral Kumar & Eapen, Leena Mary & Nair, Sthanu R, 2021. "Electricity consumption and economic growth at the state and sectoral level in India: Evidence using heterogeneous panel data methods," Energy Economics, Elsevier, vol. 94(C).
    2. Qamruzzaman, Md, 2022. "Nexus between renewable energy, foreign direct investment, and agro-productivity: The mediating role of carbon emission," Renewable Energy, Elsevier, vol. 184(C), pages 526-540.
    3. Angeliki N. Menegaki, 2019. "The ARDL Method in the Energy-Growth Nexus Field; Best Implementation Strategies," Economies, MDPI, vol. 7(4), pages 1-16, October.
    4. Huang, Lingyun & Zou, Yanjun, 2020. "How to promote energy transition in China: From the perspectives of interregional relocation and environmental regulation," Energy Economics, Elsevier, vol. 92(C).
    5. Belaïd, Fateh & Zrelli, Maha Harbaoui, 2019. "Renewable and non-renewable electricity consumption, environmental degradation and economic development: Evidence from Mediterranean countries," Energy Policy, Elsevier, vol. 133(C).
    6. Chien-Chiang Lee & Tie-Ying Liu, 2017. "Insurance development, banking activities, and regional output: evidence from China," Empirical Economics, Springer, vol. 53(3), pages 1059-1081, November.
    7. Ahakwa, Isaac & Xu, Yi & Tackie, Evelyn Agba & Odai, Leslie Afotey & Sarpong, Francis Atta & Korankye, Benard & Ofori, Elvis Kwame, 2023. "Do natural resources and green technological innovation matter in addressing environmental degradation? Evidence from panel models robust to cross-sectional dependence and slope heterogeneity," Resources Policy, Elsevier, vol. 85(PB).
    8. Wang, Mengxia & Hossain, Mohammad Razib & Si Mohammed, Kamel & Cifuentes-Faura, Javier & Cai, Xiaotong, 2023. "Heterogenous Effects of Circular Economy, Green energy and Globalization on CO2 emissions: Policy based analysis for sustainable development," Renewable Energy, Elsevier, vol. 211(C), pages 789-801.
    9. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    10. Murshed, Muntasir & Saboori, Behnaz & Madaleno, Mara & Wang, Hong & Doğan, Buhari, 2022. "Exploring the nexuses between nuclear energy, renewable energy, and carbon dioxide emissions: The role of economic complexity in the G7 countries," Renewable Energy, Elsevier, vol. 190(C), pages 664-674.
    11. Opoku, Eric Evans Osei & Boachie, Micheal Kofi, 2020. "The environmental impact of industrialization and foreign direct investment," Energy Policy, Elsevier, vol. 137(C).
    12. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    13. Jin, Taeyoung, 2022. "Impact of heat and electricity consumption on energy intensity: A panel data analysis," Energy, Elsevier, vol. 239(PA).
    14. Filiz ERATAŞ-SÖNMEZ & Yağmur SAĞLAM, 2019. "The Relationship between Financial Development and Economic Growth for Developing Countries: Panel Causality Analysis," Sosyoekonomi Journal, Sosyoekonomi Society, issue 27(42).
    15. Guan, Zepeng & Hossain, Mohammad Razib & Sheikh, Muhammad Ramzan & Khan, Zeeshan & Gu, Xiao, 2023. "Unveiling the interconnectedness between energy-related GHGs and pro-environmental energy technology: Lessons from G-7 economies with MMQR approach," Energy, Elsevier, vol. 281(C).
    16. Alvarado, Rafael & Murshed, Muntasir & Cifuentes-Faura, Javier & Işık, Cem & Razib Hossain, Mohammad & Tillaguango, Brayan, 2023. "Nexuses between rent of natural resources, economic complexity, and technological innovation: The roles of GDP, human capital and civil liberties," Resources Policy, Elsevier, vol. 85(PA).
    17. Fateh Belaïd, Sabri Boubaker, Rajwane Kafrouni, 2020. "Carbon emissions, income inequality and environmental degradation: the case of Mediterranean countries," European Journal of Comparative Economics, Cattaneo University (LIUC), vol. 17(1), pages 73-102, June.
    18. Khan, Muhammad Tariq Iqbal & Yaseen, Muhammad Rizwan & Ali, Qamar, 2019. "Nexus between financial development, tourism, renewable energy, and greenhouse gas emission in high-income countries: A continent-wise analysis," Energy Economics, Elsevier, vol. 83(C), pages 293-310.
    19. Badeeb, Ramez Abubakr & Wang, Bo & Zhao, Jun & Khan, Zeeshan & Uktamov, Khusniddin Fakhriddinovich & Zhang, Changyong, 2023. "Natural resources extraction and financial inclusion: Linear and non-linear effect of natural resources on financial sector," Resources Policy, Elsevier, vol. 85(PA).
    20. Tsangyao Chang & Chien-Chiang Lee & Hsiao-Ping Chu, 2015. "Revisiting the Defense-Growth nexus in European countries," Defence and Peace Economics, Taylor & Francis Journals, vol. 26(3), pages 341-356, June.

    More about this item

    Keywords

    climate change; carbon emissions; ecological footprints; quality of life; SDGs 3 and 13; Africa;
    All these keywords.

    JEL classification:

    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • I3 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:exe:wpaper:2308. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sebastian Kripfganz (email available below). General contact details of provider: https://edirc.repec.org/data/deexeuk.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.