Forest Covers, Energy Use, and Economic Growth Nexus in the Tropics: A Case of Ethiopia
Forest is the major source of energy and income in the tropics, while economic growth affects the forest cover and energy use pattern. Although forest cover, energy use, and economic growth are the pillars of Ethiopia's climate-resilient green economy strategy, there is a limitation in empirica...
| Main Authors: | , , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Elsevier
2022-06-01
|
| Series: | Trees, Forests and People |
| Subjects: | |
| Online Access: | http://www.sciencedirect.com/science/article/pii/S2666719322000735 |
| _version_ | 1811244847329181696 |
|---|---|
| author | Dagne Getachew Woldemedhin Engdawork Assefa Abrham Seyoum |
| author_facet | Dagne Getachew Woldemedhin Engdawork Assefa Abrham Seyoum |
| author_sort | Dagne Getachew Woldemedhin |
| collection | DOAJ |
| description | Forest is the major source of energy and income in the tropics, while economic growth affects the forest cover and energy use pattern. Although forest cover, energy use, and economic growth are the pillars of Ethiopia's climate-resilient green economy strategy, there is a limitation in empirical studies that substantiate the relationship. This paper uses Vector Auto-Regression and Auto-Regressive Distributed Lag models for the time-series data from 1990 to 2014. Besides the unit root, co-integration, and lag length tests; co-linearity, Heteroskedasticity, CUSUM, and normality were also checked. The main finding shows a direct causal relationship between energy use and forest cover, forest cover and economic growth, and energy use and economic growth. Energy use and economic growth explain 16% and 15% of the variation in forest cover, respectively. Similarly, forest cover and energy use explain 37% and 1.4% of the variation in economic growth. Moreover, forest cover and economic growth explain 29% and 23% of the variation in energy use. Though the contribution of forest cover is significant to improving energy use and economic growth, decision makers should give due emphasis to the finding. |
| first_indexed | 2024-04-12T14:31:55Z |
| format | Article |
| id | doaj.art-ea415ff0b4fd4b9083e6517e13944515 |
| institution | Directory Open Access Journal |
| issn | 2666-7193 |
| language | English |
| last_indexed | 2024-04-12T14:31:55Z |
| publishDate | 2022-06-01 |
| publisher | Elsevier |
| record_format | Article |
| series | Trees, Forests and People |
| spelling | doaj.art-ea415ff0b4fd4b9083e6517e139445152022-12-22T03:29:15ZengElsevierTrees, Forests and People2666-71932022-06-018100266Forest Covers, Energy Use, and Economic Growth Nexus in the Tropics: A Case of EthiopiaDagne Getachew Woldemedhin0Engdawork Assefa1Abrham Seyoum2Addis Ababa University, College of Development Studies, Environment and Development; P. O. Box 1176, Addis Ababa, Ethiopia; Salale University, College of Agriculture and Natural resource, Agricultural Economics, P o Box 245, Fitche, Ethiopia; Corresponding author.Addis Ababa University, College of Development Studies, Environment and Development; P. O. Box 1176, Addis Ababa, EthiopiaAddis Ababa University, College of Development Studies, Environment and Development; P. O. Box 1176, Addis Ababa, EthiopiaForest is the major source of energy and income in the tropics, while economic growth affects the forest cover and energy use pattern. Although forest cover, energy use, and economic growth are the pillars of Ethiopia's climate-resilient green economy strategy, there is a limitation in empirical studies that substantiate the relationship. This paper uses Vector Auto-Regression and Auto-Regressive Distributed Lag models for the time-series data from 1990 to 2014. Besides the unit root, co-integration, and lag length tests; co-linearity, Heteroskedasticity, CUSUM, and normality were also checked. The main finding shows a direct causal relationship between energy use and forest cover, forest cover and economic growth, and energy use and economic growth. Energy use and economic growth explain 16% and 15% of the variation in forest cover, respectively. Similarly, forest cover and energy use explain 37% and 1.4% of the variation in economic growth. Moreover, forest cover and economic growth explain 29% and 23% of the variation in energy use. Though the contribution of forest cover is significant to improving energy use and economic growth, decision makers should give due emphasis to the finding.http://www.sciencedirect.com/science/article/pii/S2666719322000735Auto-Regressive Distributed LagCo-integrationresponse to shockVariance decompositionVector Auto-Regression |
| spellingShingle | Dagne Getachew Woldemedhin Engdawork Assefa Abrham Seyoum Forest Covers, Energy Use, and Economic Growth Nexus in the Tropics: A Case of Ethiopia Trees, Forests and People Auto-Regressive Distributed Lag Co-integration response to shock Variance decomposition Vector Auto-Regression |
| title | Forest Covers, Energy Use, and Economic Growth Nexus in the Tropics: A Case of Ethiopia |
| title_full | Forest Covers, Energy Use, and Economic Growth Nexus in the Tropics: A Case of Ethiopia |
| title_fullStr | Forest Covers, Energy Use, and Economic Growth Nexus in the Tropics: A Case of Ethiopia |
| title_full_unstemmed | Forest Covers, Energy Use, and Economic Growth Nexus in the Tropics: A Case of Ethiopia |
| title_short | Forest Covers, Energy Use, and Economic Growth Nexus in the Tropics: A Case of Ethiopia |
| title_sort | forest covers energy use and economic growth nexus in the tropics a case of ethiopia |
| topic | Auto-Regressive Distributed Lag Co-integration response to shock Variance decomposition Vector Auto-Regression |
| url | http://www.sciencedirect.com/science/article/pii/S2666719322000735 |
| work_keys_str_mv | AT dagnegetachewwoldemedhin forestcoversenergyuseandeconomicgrowthnexusinthetropicsacaseofethiopia AT engdaworkassefa forestcoversenergyuseandeconomicgrowthnexusinthetropicsacaseofethiopia AT abrhamseyoum forestcoversenergyuseandeconomicgrowthnexusinthetropicsacaseofethiopia |