Energy consumption and environmental degradation in ECOWAS countries

Abstract

The study examines the impact of energy consumption on environmental degradation in West African countries from 2000 – 2019 using the System Generalized Method of Moments (SystemGMM) estimation technique. Energy consumption is measured by renewable energy consumption and fossil fuel energy consumption, while environmental degradation, is measured by total greenhouse emissions, and C02 from electricity and heat production. Results from the Breitung, and Im, Pesaran and Shin panel unit root tests reveals that all the variables were non-stationary at level, but however, became stationary after first difference. The pvalues of the Pedroni cointegration test which was conducted reveals that there is long –run relationship between the variables. Empirical results from the regression analysis showed that renewable energy consumption had inverse and statistically significant impact on C02 from electricity and heat production, and an inverse but statistically insignificant impact on greenhouse emissions. It was also found that fossil fuel energy consumption had positive and statistically significant impacts on total greenhouse emissions and C02 from electricity and heat production. It was therefore concluded that renewable energy consumption contributes to reduction of environmental degradation, while fossil fuel energy consumption increases environmental degradation in ECOWAS countries. Furthermore, gross fixed capital formation, and population growth were found to have contributed to environmental degradation. Based on the above, the study recommended among others that, West African countries should develop and encourage the use of other energy sources especially renewable energy, alternative and nuclear energy, beside fossil fuel energy sources.