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The Conditional Relationship between Renewable Energy and Environmental Quality in Sub-Saharan Africa

Author

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  • Simplice A. Asongu

    (Yaoundé/Cameroon)

  • Chimere O. Iheonu

    (University of Nigeria, Nsukka, Nigeria)

  • Kingsley O. Odo

    (University of Nigeria, Nsukka, Nigeria)

Abstract

This paper complements existing literature by assessing the conditional relationship between renewable energy and environmental quality in a sample of 40 African countries for the period 2002 to 2017. The empirical evidence is based on fixed effects regressions and quantile fixed effects regressions. The findings from both estimation techniques show that renewable energy consistently decreases carbon dioxide (CO2) emissions. Moreover, the negative effect is a decreasing function of CO2 emissions or the negative effect of renewable energy on CO2 emissions decreases with increasing levels of CO2 emissions. In other words, countries with higher levels of CO2 emissions consistently experience a less negative effect compared to their counterparts with lower levels of CO2 emissions. Policy implications are discussed.

Suggested Citation

  • Simplice A. Asongu & Chimere O. Iheonu & Kingsley O. Odo, 2019. "The Conditional Relationship between Renewable Energy and Environmental Quality in Sub-Saharan Africa," Working Papers 19/074, European Xtramile Centre of African Studies (EXCAS).
  • Handle: RePEc:exs:wpaper:19/074
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    More about this item

    Keywords

    Panel econometrics; Renewable energy; Carbon emissions; Africa;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa

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