The Causal Relation between Energy Consumption, Carbon Dioxide Emissions, and Macroeconomic Variables in Somalia
This study investigated the relationship between energy consumption, carbon dioxide emissions, and macroeconomic variables in Somalia with data spanning from 1990 to 2019 using ARDL model. The study found a negative long-run relationship between carbon dioxide emissions and energy consumption in So...
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| Format: | Article |
| Language: | English |
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EconJournals
2023-05-01
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| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | http://www.econjournals.com/index.php/ijeep/article/view/14262 |
| _version_ | 1797823471167733760 |
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| author | Zakarie Abdi Warsame Maria Mohamed Ali Liban Bile Mohamed Farhia Hassan Mohamed |
| author_facet | Zakarie Abdi Warsame Maria Mohamed Ali Liban Bile Mohamed Farhia Hassan Mohamed |
| author_sort | Zakarie Abdi Warsame |
| collection | DOAJ |
| description |
This study investigated the relationship between energy consumption, carbon dioxide emissions, and macroeconomic variables in Somalia with data spanning from 1990 to 2019 using ARDL model. The study found a negative long-run relationship between carbon dioxide emissions and energy consumption in Somalia, suggesting that improving access to clean energy can reduce the gradual rise of carbon dioxide emissions. The study also found that rising industrial value-added had a significant positive impact on energy consumption. Furthermore, findings from Cholesky's variance decomposition showed that 13.13% of future fluctuations in energy consumption are due to shocks in carbon dioxide emission, 33.63% of future fluctuations in carbon dioxide emissions are due to shocks in energy consumption, 40.63% of future fluctuations in industrialization are due to shocks in energy consumption and 41.23% of future fluctuations in population are due to shocks in energy consumption. There was evidence of a bidirectional causality between: energy consumption and population. The study suggests adding renewable energy technologies to the energy portfolio. This would help reduce reliance on unstable energy sources and reduce the chance that changes in commodity prices will interrupt the energy supply, which eventually would help reduce the effects of climate change.
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| first_indexed | 2024-03-13T10:23:31Z |
| format | Article |
| id | doaj.art-17ee9f1d361a4a039c378e77e69692db |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-03-13T10:23:31Z |
| publishDate | 2023-05-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-17ee9f1d361a4a039c378e77e69692db2023-05-19T14:31:36ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532023-05-0113310.32479/ijeep.14262The Causal Relation between Energy Consumption, Carbon Dioxide Emissions, and Macroeconomic Variables in SomaliaZakarie Abdi Warsame0Maria Mohamed Ali1Liban Bile Mohamed2Farhia Hassan Mohamed3Faculty of Economics, SIMAD University, Mogadishu, Somalia; & Kasmo Institute for Technology, Logistics and Economics Research (KITLER), Somalia.Faculty of Economics, SIMAD University, Mogadishu, Somalia,Somalia National Bureau of Statistics, SomaliaFaculty of Economics, SIMAD University, Mogadishu, Somalia, This study investigated the relationship between energy consumption, carbon dioxide emissions, and macroeconomic variables in Somalia with data spanning from 1990 to 2019 using ARDL model. The study found a negative long-run relationship between carbon dioxide emissions and energy consumption in Somalia, suggesting that improving access to clean energy can reduce the gradual rise of carbon dioxide emissions. The study also found that rising industrial value-added had a significant positive impact on energy consumption. Furthermore, findings from Cholesky's variance decomposition showed that 13.13% of future fluctuations in energy consumption are due to shocks in carbon dioxide emission, 33.63% of future fluctuations in carbon dioxide emissions are due to shocks in energy consumption, 40.63% of future fluctuations in industrialization are due to shocks in energy consumption and 41.23% of future fluctuations in population are due to shocks in energy consumption. There was evidence of a bidirectional causality between: energy consumption and population. The study suggests adding renewable energy technologies to the energy portfolio. This would help reduce reliance on unstable energy sources and reduce the chance that changes in commodity prices will interrupt the energy supply, which eventually would help reduce the effects of climate change. http://www.econjournals.com/index.php/ijeep/article/view/14262Energy consumption, Industrialization, Trade openness, Somalia, ARDL |
| spellingShingle | Zakarie Abdi Warsame Maria Mohamed Ali Liban Bile Mohamed Farhia Hassan Mohamed The Causal Relation between Energy Consumption, Carbon Dioxide Emissions, and Macroeconomic Variables in Somalia International Journal of Energy Economics and Policy Energy consumption, Industrialization, Trade openness, Somalia, ARDL |
| title | The Causal Relation between Energy Consumption, Carbon Dioxide Emissions, and Macroeconomic Variables in Somalia |
| title_full | The Causal Relation between Energy Consumption, Carbon Dioxide Emissions, and Macroeconomic Variables in Somalia |
| title_fullStr | The Causal Relation between Energy Consumption, Carbon Dioxide Emissions, and Macroeconomic Variables in Somalia |
| title_full_unstemmed | The Causal Relation between Energy Consumption, Carbon Dioxide Emissions, and Macroeconomic Variables in Somalia |
| title_short | The Causal Relation between Energy Consumption, Carbon Dioxide Emissions, and Macroeconomic Variables in Somalia |
| title_sort | causal relation between energy consumption carbon dioxide emissions and macroeconomic variables in somalia |
| topic | Energy consumption, Industrialization, Trade openness, Somalia, ARDL |
| url | http://www.econjournals.com/index.php/ijeep/article/view/14262 |
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