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Revisiting the Environmental Kuznets Curve and the Role of Energy Consumption: The Case of Namibia

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  • Sunde, Tafirenyika

Abstract

The study investigated the dynamic relationship between CO2 emissions, economic growth, and energy consumption for the period 1991:q1-2016:q4 in Namibia. The study applied the ARDL and Granger causality analysis to investigate the long run and causal relationships among these variables, respectively. The study confirmed a long run relationship between CO2 emissions, economic growth, and energy consumption. The results showed that the Environmental Kuznets Curve (EKC) is found in both long and short runs in Namibia and that all the variables Granger cause each other. These results imply that economic growth can be a remedy for environmental degradation which means that the exploitation of natural resources to realize economic growth can be accepted until the turning point of the EKC curve is reached. The study recommends that actions to slow down the release of CO2 emissions and the raising of awareness about environmental concerns should wait until the economy reaches high-income levels.

Suggested Citation

  • Sunde, Tafirenyika, 2018. "Revisiting the Environmental Kuznets Curve and the Role of Energy Consumption: The Case of Namibia," MPRA Paper 86507, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:86507
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    Keywords

    Environmental Kuznets Curve; CO2 emissions; economic growth; energy consumption; ARDL-ECM; Granger causality; Namibia.;

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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