Renewable energy, CO2 emissions and economic growth in sub-Saharan Africa: does institutional quality matter?

Author(s):  
Alex O. Acheampong ◽  
Janet Dzator ◽  
David A. Savage
2020 ◽  
Vol 12 (3) ◽  
pp. 1237 ◽  
Author(s):  
Zhiheng Wu ◽  
Guisheng Hou ◽  
Baogui Xin

Using the panel vector autoregressive (PVAR) model accompanied by the system-generalized method of moment (System-GMM) approach, this paper investigates the dynamic causality between participation in global value chains (GVCs), renewable energy consumption and carbon dioxide (CO2) emissions throughout 1990–2015 for 172 countries. The results show that participation in GVCs negatively causes renewable energy consumption except for the Middle East and North America (MENA) and sub-Saharan Africa. Second, except for the Asia–Pacific region and globally, participation in GVCs has no causal impact on CO2 emissions, and participation in GVCs has a positive effect on CO2 emissions in the Asia–Pacific region and globally. Third, except for globally and sub-Saharan Africa, CO2 emissions have no causal impact on participation in GVCs; however, CO2 emissions hurt participation in GVCs globally and in the sub-Saharan African region. Forth, renewable energy consumption positively causes participation in GVCs in MENA, while renewable energy consumption does not cause participation in GVCs globally and in other regions. Fifth, there is no causality between CO2 emissions and renewable energy consumption both at the global and regional levels. Several policy implications are proposed and discussed for promoting participation in GVCs and improving the environment.


2021 ◽  
Vol 8 (6) ◽  
pp. 541-560
Author(s):  
Taiwo AKINLO ◽  
Charles Olalekan OKUNLOLA

This research investigates the interactive effect of trade openness and the institutional quality on economic growth in sub-Sahara Africa. The sample consists of 38 sub-Saharan African countries and covers the period 1986-2015. Pooled OLS, fixed effect, and Dynamic GMM were used as estimation techniques. The empirical section used a nonlinear growth regression specification that interacts trade openness with law and order, bureaucratic quality, corruption, government stability, and democratic accountability. The study found that corruption, government stability, law and order, and bureaucratic quality as institutional quality variables harm economic growth. The interaction of trade openness and institutional quality variables positively impacted economic growth. It is an indication that trade openness better impacted economic growth in the presence of high-quality institutional variables.


2020 ◽  
pp. 097674792091511
Author(s):  
Dejene Mamo Bekana

Based on empirical panel data for a sample of 37 sub-Saharan African economies for 1996–2016, this inquiry examines the extent to which institutional quality explains the existing cross-country difference in economic performance in sub-Saharan Africa. While most of the existing studies focus only on the direct effect of institutional quality, this article investigates the direct and indirect effects of institutions. It also reflects on impact of the interaction between institutional quality and innovation on economic growth in developing countries. The evidence provides very strong support for the direct effect of institutional quality development on economic performance as well as for its indirect effect via its impact on innovation. However, the results do not support theories that argue in favour of interaction between institutional quality such as democracy, governance quality and innovation, thereby pointing to the need for better calibration of the numerous existing theoretical postulations and related empirical measures. JEL: D70, D72, O15, O30, O31, O55


2021 ◽  
Author(s):  
Michael Appiah ◽  
Benjamin Adelwini Bugri ◽  
Frank Antwi

Abstract This paper aims to look into the role of institutional quality in regulating energy and growth affiliation. The countries of Sub-Saharan Africa (SSA) are studied from 1990 to 2019. CSD and SH tests were used to verify cross-sectional dependency and slope homogeneity properties. CIPS and CADF were used to investigate stationarity features. The Westerlund bootstrap cointegration test was used to analyze the long-tenure equilibrium affiliation among the variables and confirm cointegration in the extended period. To examine the long-short term performance between the variables, the CS-ARDL approach is used. To analyze the flow of causation, the study used the DH causality process. The findings reveal that energy has a negative and significant impact on growth. In both terms, industrialization and population have a negative and positive impact on growth, respectively. The DH heterogenous causality study reveals the mixed effect, i.e. one-way causal associations between growth and institutional quality, two-way causal associations between energy and population, and no causation with industrialization. Furthermore, institutional quality as a moderating variable harms growth. To achieve long-period growth, states should expand investment in renewable energy sectors, create well-resourced institutions, and plan for renewable energy development, according to this empirical research.


2020 ◽  
Vol 2 (3) ◽  
pp. 82-90
Author(s):  
Kabiru Maji Ibrahim ◽  
Salisu Ibrahim Waziri

The study investigates the role of information and communication technology (ICT) and renewable energy on environmental sustainability in sub-Saharan Africa. The system generalized method of moments (GMM) was employed to estimate data of 45 sub-Saharan countries that cover the 2008 -2016 period. Result reveals that increasing ICT penetration and renewable energy use reduce CO2 emissions and improves environmental sustainability. Economic growth and population growth also mitigate CO2 emissions while education and trade openness have a neutral impact. These findings imply that increasing penetration of ICT facilities and renewable energy in the region will promote inclusive environmental sustainability. The interactive estimation of ICT variables was further considered to determine net effects and the ICT threshold that is relevant for policy implication.


2014 ◽  
Vol 2 (2) ◽  
Author(s):  
Shuaib Lwasa

Africa’s urbanization rate has increased steadily over the past three decades and is reported to be faster than in any other region in the world . It is estimated that by 2030, over half of the African population will be living in urban areas . But the nature of Africa’s urbanization and subsequent form of cities is yet to be critically analyzed in the context of city authorities’ readiness to address the challenges . Evidence is also suggesting that urbanization in African countries is increasingly associated with the high economic growth that has been observed in the last two decades . Both underlying and proximate drivers are responsible for the urbanization, and these include population dynamics, economic growth, legislative designation, increasing densities in rural centers, as well as the growth of mega cities such as Lagos, Cairo and Kinshasa, that are extending to form urban corridors . With the opportunities of urbanization in Sub–Saharan Africa, there are also challenges in the development and management of these cities . Those challenges include provision of social services, sustainable economic development, housing development, urban governance, spatial development guidance and environmental management, climate change adaptation, mitigation and disaster risk reduction . The challenge involves dealing with the development and infrastructure deficit, in addition to required adaption to and mitigation of climate change . This paper examines the current state of urban management in Africa .


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