The Effects of Energy Consumption and Economic Growth on Carbon Dioxide Emissions (CO2) in Sub-Saharan Africa

Abstract

The main objective of this study is to examine the effects of energy consumption and economic growth on carbon dioxide emissions (CO2) in 21 Sub-Saharan African countries (SSA) over the period 2006-2014. The data were analysed using static model (which include panel fixed effect and random effect model) and dynamic model of Generalize Method of Moment (GMM) which is
the main model for the study are employed to conduct this empirical analysis. The empirical findings from the fixed and random effect model of the study reveals that energy consumption and economic growth have positive and significant effect on carbon dioxide emissions and the fixed effect model is more appropriated. The results from dynamic panel GMM estimation revealed that energy consumption and economic growth also do increase carbon dioxide emissions in the sample countries. The study recommends that a series of policy measures related to economic growth and energy consumption should be taken to reduce CO2 emissions. The SSA Government should increase significantly the investment and the share of its green energy in the total energy consumption. They may equally promote strategies and implement economic growth expansion policies that are friendlier to environmental quality as predicted by Environmental Kuznets Curve (EKC).