Growth threshold-effect on renewable energy consumption in major oil-producing countries in sub-Saharan Africa: a dynamic panel threshold regression estimation

2020 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Idris Abdullahi Abdulqadir
Keyword(s):  
Energy Consumption ◽  
Threshold Effect ◽  
Sub Saharan Africa ◽  
Threshold Regression ◽  
Renewable Energy Consumption ◽  
Dynamic Panel ◽  
Content Type ◽  
Sub Saharan ◽  
Panel Threshold Regression ◽  
Growth Threshold

Purpose This study aims to explore the relationship between the growth threshold effect on renewable energy consumption (REC) in the major oil-producing countries in sub-Saharan Africa (SSA) over the period 1990–2018. Design/methodology/approach This article used a dynamic panel threshold regression model introduced by Hansen (1996, 1999 and 2000) threshold (TR) models. The procedure is achieved using 5,000 bootstrapping replications and the grid search to obtain the asymptotic distribution and p-values. For the long-run relationship among our variables, the author followed the process in Pesaran et al. (1999) pooled mean group (PMG) for heterogeneous panels. Furthermore, for the robustness of our empirical results due to the sensitivity of the results to outliers, the author used the approach by Cook (1979) distance measure. The author applied quantile (QR) regression to explore the distribution of dependent variables following Bassett and Koenker (1982) and Koenker and Bassett (1978) approaches. Findings The results from the threshold effect test and threshold regression revealed a significant single threshold effect of growth level on REC. Furthermore, the result from the PMG estimation showed the growth of the variable, energy intensity, consumer prices and CO2 emissions play a significant role in REC in major oil-producing countries in SSA. The growth threshold estimation results indicated one significant threshold value of 1.013% at one period lagged of real growth. The outlier’s sensitivity detention greatly influenced our empirical results. Originality/value The article filled the literature gap by applying a combined measure that is robustness to detect outliers in the data, which none of the studies in the literature addresses hitherto. Further, the article extends the quantile regression to growth – REC literature.

scholarly journals Foreign direct investment and poverty reduction in sub-Saharan Africa: does environmental degradation matter?

2021 ◽  
Vol 7 (1) ◽  
Author(s):  
James Temitope Dada ◽  
Taiwo Akinlo
Keyword(s):  
Environmental Degradation ◽  
Poverty Reduction ◽  
Threshold Effect ◽  
Sub Saharan Africa ◽  
Threshold Regression ◽  
Overwhelming Evidence ◽  
Sub Saharan ◽  
Reduction Effect ◽  
The Empirical Analysis ◽  
Panel Threshold Regression

AbstractThis paper investigates the threshold effect of environmental degradation on the FDI-poverty nexus in sub-Saharan Africa for the period 1986–2018. The study used panel threshold regression for the empirical analysis. The evidence from threshold regression using different measures of poverty and environmental degradation shows that the poverty reduction effect of FDI is not eroded by environmental degradation. The study found overwhelming evidence that at the higher level of environmental degradation, FDI contributes significantly to poverty reduction except when Household final consumption is used to proxy poverty and FDI produces an insignificant effect on poverty reduction at the higher level of methane emissions and nitrous oxide emission. Based on this finding, any attempts to reduce environmental degradation by reducing the inflow of FDI will worsen poverty rates in the region.

scholarly journals Governance and renewable energy consumption in Sub-Saharan Africa

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Simplice Asongu ◽  
Nicholas M. Odhiambo
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Political Stability ◽  
Policy Implications ◽  
Sub Saharan Africa ◽  
Renewable Energy Consumption ◽  
Institutional Governance ◽  
Content Type ◽  
Sub Saharan ◽  
Unexpected Findings

Purpose The purpose of this study is to assess the nexus between governance and renewable energy consumption in Sub-Saharan Africa (SSA). Design/methodology/approach The focus is on 44 countries in SSA with data from 1996 to 2016. The empirical evidence is based on Tobit regressions. Findings It is apparent from the findings that political and institutional governance are negatively related to the consumption of renewable energy in the sampled countries. The unexpected findings are clarified and policy implications are discussed in the light of sustainable development goals. Originality/value This study extends the extant literature by assessing how political governance (consisting of political stability and “voice and accountability”) and institutional governance (entailing the rule of law and corruption-control) affect the consumption of renewable energy in SSA.

scholarly journals The Causality between Participation in GVCs, Renewable Energy Consumption and CO2 Emissions

2020 ◽  
Vol 12 (3) ◽  
pp. 1237 ◽  
Author(s):  
Zhiheng Wu ◽  
Guisheng Hou ◽  
Baogui Xin
Keyword(s):  
Renewable Energy ◽  
Energy Consumption ◽  
Co2 Emissions ◽  
Sub Saharan Africa ◽  
Asia Pacific ◽  
Pacific Region ◽  
Asia Pacific Region ◽  
Renewable Energy Consumption ◽  
Causal Impact ◽  
Sub Saharan

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.

Nutrition and economic growth in sub-Saharan Africa: a causality test using panel data

2017 ◽  
Vol 16 (2) ◽  
pp. 174-189
Author(s):  
Kolawole Ogundari ◽  
Adebayo Aromolaran
Keyword(s):  
Economic Growth ◽  
Design Methodology ◽  
Sub Saharan Africa ◽  
Dynamic Panel ◽  
Causality Test ◽  
Panel Causality ◽  
Content Type ◽  
Causality Tests ◽  
Short Run ◽  
Sub Saharan

Purpose This study aims to investigate the causal relationship between nutrition and economic growth in sub-Saharan Africa. Design/methodology/approach A dynamic panel causality test based on the Blundell-Bond’s system generalized methods-of-moment was used. To make efficient inference for the estimates, the authors check for the panel unit root and co-integration relationship amongst the variables. Findings The variables were found to be non-stationary at level, stationary after first difference and co-integrated. The results of the causality tests reveal evidence of long and short-run bidirectional causality between nutrition and economic growth, which implies that nutritional improvement is a cause and consequence of economic growth and vice versa. Originality/value This is the first study to consider causality between nutrition and economic growth in the region.

Sign in / Sign up

Export Citation Format

Share Document