IDEAS home Printed from https://ideas.repec.org/p/tas/wpaper/32765.html
   My bibliography  Save this paper

The moderating role of green energy and energy-innovation in environmental kuznets: Insights from quantile-quantile analysis

Author

Abstract

Background. The recent environmental challenges in Africa emanated from global warming, human activity, limited access to electricity, and over-exploitation of natural resources, have contributed to the growth of carbon dioxide (CO2) emissions in the region. Objective. This paper empirically investigates the moderating role of green energy consumption and energy innovation in the environmental Kuznets’ curve for the Sub-Saharan African (SSA) region using data spanning from 1980 to 2018. Methods. A sample of 45 SSA countries for the period between 1980-2018 was studied. To solve for potential heteroscedasticity and endogeneity issues, we performed 2sls and panel quantile regression to give inference at various quantiles. Discussion. Empirical results confirm that green energy, energy innovation and natural resource abundance mitigate pollution in the SSA region. Besides, a threshold effect of energy innovation is estimated, which indicates the amount of energy innovation that SSA would require to reduce environment degradation. Our threshold model found that atleast 54 per cent of population need access to energy innovation before the region could be safe from environmental degradation. Conclusions. We conclude that investment in green energy, energy innovation, and conservation of natural resources will help to mitigate environmental degradation in SSA in the long run. Policies should be targeted towards encouraging the consumption of green energy, and more investment in energy innovation beyond the estimated threshold will save the region from pollution and its implications. Contribution. This study has contributed to the existing studies in different ways. This is the first study to explore the impact of green energy and energy innovation in SSA. We contribute to this line of research by implementing quantile techniques to examine the role of green energy and energy innovation in the environmental Kuznets’ hypothesis. In addition, our threshold estimation provides practical implications for policy applications. a more important driver during the disbandment of OPEC. Finally, we find that these newly identified shocks have distinct consequences for the U.S. economy: precautionary demand shocks reduce real GDP, while speculative demand shocks cause inflation.

Suggested Citation

  • Hammed, Oluwaseyi Musibau & Yanotti, Maria & Vespignani, Joaquin & Nepal, Rabindra, 2020. "The moderating role of green energy and energy-innovation in environmental kuznets: Insights from quantile-quantile analysis," Working Papers 2020-03, University of Tasmania, Tasmanian School of Business and Economics.
  • Handle: RePEc:tas:wpaper:32765
    as

    Download full text from publisher

    File URL: https://eprints.utas.edu.au/32765/1/2020-03_Musibau_Yanotti_Vespignani_Nepal.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    More about this item

    Keywords

    environmental kuznets curve; green energy; energy innovation; CO2 emission; SSA countries; and quantile-quantile regression.;
    All these keywords.

    JEL classification:

    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:tas:wpaper:32765. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Oscar Pavlov). General contact details of provider: https://edirc.repec.org/data/dutasau.html .

    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.

    We have no references for this item. You can help adding them by using 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.