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The Interconnection of Economic Growth, Carbon Dioxide Emission, Foreign Direct Investment and Energy Consumption: Evidence from Sub-Saharan Africa

Article

Last updated: 28 Dec 2024

Subjects

-

Tags

Environmental management

Abstract

This study examines how economic growth, carbon dioxide (CO2) emissions, foreign direct investment (FDI), and energy consumption relate to each other in Sub-Saharan African (SSA) region by employing the quantile regression model to guesstimate the point coefficients of the explanatory variables on the response variables for a range of quantiles from 0.01 to 0.99. The researchers make use of data from 17 SSA countries, with the years ranging from 1975 to 2018. The study reveals a dynamic result for the estimated regression parameters of the quantile regression models for all the respective explanatory variables at varied quantiles. The effect of FDI inflow on economic growth is statistically significant at quantiles 0.1, 0.4 to 0.8 but not statistically significant at quantiles 0.2, 0.3, and 0.9 at 1% and 5% significance levels. Also, the effects of energy consumption on economic growth and the effect of CO2 emissions on economic growth are statistically significant at quantiles of 0.1, 0.2, and 0.7 at 1% and 5% significance levels. Furthermore, the result established that the coefficients for FDI inflow, energy consumption, and CO2 emissions are positive across all the specified quantiles except for quantile 0.1 for FDI inflow, which is negative. Evidently, there exists an asymmetric relationship between economic growth and its explanatory variables (FDI inflow, energy consumption, and CO2 emissions) at diverse quantile levels in its restrictive distribution. The study recommends that governments in the various regions should authorize the environmental agencies to act within the power given to them by the constitution. Also, less polluting foreign production techniques such as greener energy should also be sought after.

DOI

10.21608/aujes.2023.168361.1099

Keywords

CO2 Emission, Economic growth, energy consumption, FDI

Authors

First Name

David

Last Name

Boohene

MiddleName

-

Affiliation

University of Energy and Natural Resources, Ghana

Email

david.boohene@uenr.edu.gh

City

-

Orcid

0000-0002-3126-4426

First Name

Joseph

Last Name

Darkwah

MiddleName

Asante

Affiliation

Zhejiang Gongshang University, China

Email

darkwahasante@gmail.com

City

-

Orcid

-

Volume

4

Article Issue

1

Related Issue

39444

Issue Date

2023-02-01

Receive Date

2022-10-13

Publish Date

2023-02-01

Page Start

4

Page End

23

Print ISSN

2735-4229

Online ISSN

2735-4237

Link

https://aujes.journals.ekb.eg/article_283837.html

Detail API

https://aujes.journals.ekb.eg/service?article_code=283837

Order

2

Type

Review articles

Type Code

1,616

Publication Type

Journal

Publication Title

Aswan University Journal of Environmental Studies

Publication Link

https://aujes.journals.ekb.eg/

MainTitle

The Interconnection of Economic Growth, Carbon Dioxide Emission, Foreign Direct Investment and Energy Consumption: Evidence from Sub-Saharan Africa

Details

Type

Article

Created At

28 Dec 2024