Exploring the contribution of energy price to carbon emissions in African countries
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RESEARCH ARTICLE
Exploring the contribution of energy price to carbon emissions in African countries Bamanga Umar 1
&
Md. Mahmudul Alam 2
&
Abul Quasem Al-Amin 3
Received: 8 June 2020 / Accepted: 26 August 2020 # Springer-Verlag GmbH Germany, part of Springer Nature 2020
Abstract The increasing level of greenhouse gas carbon emission currently exacerbates the devastating effect of global warming on the Earth’s ecosystem. Energy usage is one of the most important determinants that is increasing the amount of carbon gases being released. Simultaneously, the level of energy usage is derived by the price, and therefore, this study examines the contribution of energy price to carbon gas emissions in thirteen African nations for the period spanning 1990 to 2017. It does this by utilising the cross-sectional dependence (CD), augmented mean group (AMG) and pooled mean group (PMG) panel modelling methods. The findings of the AMG model suggest that a 1% increase in energy price leads to a 0.02% decrease in carbon emission. The results further reveal that a 1% increase in energy intensity and technological innovation leads to 0.04% and 3.65% increase in carbon emission, respectively, in the selected African countries. Findings will help policymakers to implement effective energy price policies to reduce carbon emissions and achieve sustainable development goals especially in the emerging economies of Africa. Keywords Africa . Energy price . Carbon emissions . Augmented mean group . Pooled mean group (PMG) . Cross-sectional dependence (CD) . Sustainable development
Introduction The increasing volume of greenhouse carbon emissions has reignited the debate on the consequences of environmental degradation. Carbon emissions now constitute an inordinate challenge to the achievement of sustainable development goals globally. Hence, extreme weather, which is a symptom of overarching climatic changes, is a threat to human health Responsible Editor: Nicholas Apergis * Abul Quasem Al-Amin [email protected] Bamanga Umar [email protected] Md. Mahmudul Alam [email protected] 1
Department of Banking and Finance, School of Management and Information Technology, Modibbo Adama University of Technology, Yola, Adamawa State, Nigeria
2
School of Economics, Finance & Banking, Universiti Utara Malaysia, Sintok, Kedah, Malaysia
3
Department of Geography and Environmental Management, University of Waterloo, Waterloo, ON, Canada
and the environment. Climate change has been threatening the basic elements of human life such as access to water, health food security and the use of natural resources. Thus, a transition to a low-carbon environment needs to be developed by both academics and regulators to unlock the potential of attaining a ‘greener’ economy. Despite measures to mitigate global warming, the report of the International Energy Outlook (2017) revealed that the global energy-related CO2 production rose from 1.4% to 32.5 gigatons as of 2017, thereby representing a very high statistic. The significant rise indicates inadequate p
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