The dynamic linkage between renewable energy consumption and environmental sustainability in Sub-Saharan African countries: Heterogeneous macro-panel data analysis
AbstractEnvironmental sustainability is a pivotal facet of sustainable development, captivating the attention of development researchers. Within this context, energy consumption emerges as a pivotal determinant influencing environmental sustainability variations among countries. This study delves in...
| Main Authors: | , , , |
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| Format: | Article |
| Language: | English |
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Taylor & Francis Group
2024-12-01
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| Series: | Cogent Economics & Finance |
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| Online Access: | https://www.tandfonline.com/doi/10.1080/23322039.2023.2285188 |
| _version_ | 1827581165761986560 |
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| author | Mulugeta Bekele Maria Sassi Kedir Jemal Beyan Ahmed |
| author_facet | Mulugeta Bekele Maria Sassi Kedir Jemal Beyan Ahmed |
| author_sort | Mulugeta Bekele |
| collection | DOAJ |
| description | AbstractEnvironmental sustainability is a pivotal facet of sustainable development, captivating the attention of development researchers. Within this context, energy consumption emerges as a pivotal determinant influencing environmental sustainability variations among countries. This study delves into the linkages between renewable energy consumption and environmental sustainability within 30 Sub-Saharan African countries, utilising panel data from 2000 to 2020. It contributes to the expanding literature on this subject by considering the impacts of institutional and political factors while addressing challenges related to cross-sectional dependence, heterogeneity, and serial correlation through robust estimation. To this end, the Augmented Mean Group Model was used in the empirical estimation. The study reveals a noteworthy 67.32% mean score for renewable energy consumption in the total final energy consumption across the sampled countries, a positive deviation from the global average of 11.2%. Empirical results signify a positive and statistically significant long-term relationship between renewable energy consumption and environmental sustainability. Nevertheless, the inclusion of a policy dummy variable indicates a significant increase in greenhouse gas emissions post the Millennium Development Goals period. Granger non-causality test results reveal a bidirectional causality between renewable energy consumption and environmental sustainability. Thus, subsidies and tax exemptions for renewable energy production and consumption, as well as supporting sustainable development goals with appropriate environmental investment, are among the policy options that Sub-Saharan African countries and policymakers could pursue to achieve environmental sustainability and sustainable development goals. |
| first_indexed | 2024-03-08T22:32:27Z |
| format | Article |
| id | doaj.art-8d55e12d226a4349aff120b99b7f1192 |
| institution | Directory Open Access Journal |
| issn | 2332-2039 |
| language | English |
| last_indexed | 2024-03-08T22:32:27Z |
| publishDate | 2024-12-01 |
| publisher | Taylor & Francis Group |
| record_format | Article |
| series | Cogent Economics & Finance |
| spelling | doaj.art-8d55e12d226a4349aff120b99b7f11922023-12-18T00:00:41ZengTaylor & Francis GroupCogent Economics & Finance2332-20392024-12-0112110.1080/23322039.2023.2285188The dynamic linkage between renewable energy consumption and environmental sustainability in Sub-Saharan African countries: Heterogeneous macro-panel data analysisMulugeta Bekele0Maria Sassi1Kedir Jemal2Beyan Ahmed3Agricultural Economics, Haramaya University, Dire Dawa, EthiopiaAgricultural Economics, University of Pavia, Pavia, ItalyAgricultural Economics, Haramaya University, Dire Dawa, EthiopiaAgricultural Economics, Haramaya University, Dire Dawa, EthiopiaAbstractEnvironmental sustainability is a pivotal facet of sustainable development, captivating the attention of development researchers. Within this context, energy consumption emerges as a pivotal determinant influencing environmental sustainability variations among countries. This study delves into the linkages between renewable energy consumption and environmental sustainability within 30 Sub-Saharan African countries, utilising panel data from 2000 to 2020. It contributes to the expanding literature on this subject by considering the impacts of institutional and political factors while addressing challenges related to cross-sectional dependence, heterogeneity, and serial correlation through robust estimation. To this end, the Augmented Mean Group Model was used in the empirical estimation. The study reveals a noteworthy 67.32% mean score for renewable energy consumption in the total final energy consumption across the sampled countries, a positive deviation from the global average of 11.2%. Empirical results signify a positive and statistically significant long-term relationship between renewable energy consumption and environmental sustainability. Nevertheless, the inclusion of a policy dummy variable indicates a significant increase in greenhouse gas emissions post the Millennium Development Goals period. Granger non-causality test results reveal a bidirectional causality between renewable energy consumption and environmental sustainability. Thus, subsidies and tax exemptions for renewable energy production and consumption, as well as supporting sustainable development goals with appropriate environmental investment, are among the policy options that Sub-Saharan African countries and policymakers could pursue to achieve environmental sustainability and sustainable development goals.https://www.tandfonline.com/doi/10.1080/23322039.2023.2285188energy consumptionenvironmental sustainabilityaugmented mean groupGranger causalitySub-Saharan Africa |
| spellingShingle | Mulugeta Bekele Maria Sassi Kedir Jemal Beyan Ahmed The dynamic linkage between renewable energy consumption and environmental sustainability in Sub-Saharan African countries: Heterogeneous macro-panel data analysis Cogent Economics & Finance energy consumption environmental sustainability augmented mean group Granger causality Sub-Saharan Africa |
| title | The dynamic linkage between renewable energy consumption and environmental sustainability in Sub-Saharan African countries: Heterogeneous macro-panel data analysis |
| title_full | The dynamic linkage between renewable energy consumption and environmental sustainability in Sub-Saharan African countries: Heterogeneous macro-panel data analysis |
| title_fullStr | The dynamic linkage between renewable energy consumption and environmental sustainability in Sub-Saharan African countries: Heterogeneous macro-panel data analysis |
| title_full_unstemmed | The dynamic linkage between renewable energy consumption and environmental sustainability in Sub-Saharan African countries: Heterogeneous macro-panel data analysis |
| title_short | The dynamic linkage between renewable energy consumption and environmental sustainability in Sub-Saharan African countries: Heterogeneous macro-panel data analysis |
| title_sort | dynamic linkage between renewable energy consumption and environmental sustainability in sub saharan african countries heterogeneous macro panel data analysis |
| topic | energy consumption environmental sustainability augmented mean group Granger causality Sub-Saharan Africa |
| url | https://www.tandfonline.com/doi/10.1080/23322039.2023.2285188 |
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