This study examines the impact of renewable and non-renewable energy consumption on carbon emissions, considering the role of population density, urbanization, foreign direct investment, technological innovation, and trade openness for African countries from 1990 to 2019. We apply an advanced econometric methodology like the cross-sectional autoregressive distributed model (CS-ARDL) for long-run and short-run estimation, which allows for the cross-sectional dependencies and slope heterogeneity. Our finding shows that the non-renewable resources, population density, urbanization, and foreign direct investment contribute to the carbon emissions; in contrast, renewable resources and trade openness reduce the carbon emissions in African countries. Results also report a unidirectional causality from non-renewable energy consumption to carbon emissions, while there is evidence of a feedback hypothesis between renewable energy consumption and carbon emissions. This study provides several policy implications for sustainable development.
This study estimates exchange rate pass-through to prices in Albania using a Vector Autoregressive model from 2000Q1 to 2017 Q1 following Cholesky decomposition. We perform an Augmented Dickey-Fuller test and Phillips-Pherron test to ensure the stationarity of the variables and we estimate the impulse-response functions and the variance decomposition of import, producer, consumer prices and interest rate to oil price /exchange rate shocks. Impulse-response functions indicate an incomplete passthrough of exchange rate to prices and the highest response is of consumer prices and interest rates. Variance decomposition indicates that the variance of import prices is explained by growth rate, its shocks and oil prices shocks. The variance of producer prices is explained by its own shocks, real GDP rate and interest rate whilst consumer prices are explained by its innovations, GDP rate and exchange rate. In order to confirm our results, we order the interest rate before the exchange rate and the findings do not change from the previous results. We perform diagnostic tests for the presence of autocorrelation and the stability of our model and the results show that we fail to reject the null hypothesis for serial autocorrelation and all the roots lie within the companion matrix. However, there is evidence on non-normality in our VAR residuals, but this does not violate our analysis. Contribution/Originality: We estimate the pass-through using recent data and we add producer prices in our VAR model, which to our best knowledge has not been captured in the existing pass-through literature for Albania. 1. INTRODUCTION Republic of Albania has experienced significant structural changes in the past which featured the current state of the economy. Instead of recovering from the transition period, from communism to a free market economy, the Albanian economy went through pyramid schemes (Ponzi schemes), followed by the civil war of '97-98 which lead the country to total collapse. As a result the Albanian government had to deal with extreme financial , economic and social costs which brought instability and large masses of emigration. Vaughan-Whitehead (1999) defines that unemployement, collapse of industrial production, poverty and the inefficiency of the banking system brought the collapse of the "shining star". The ex-government was assisted by the international institutions in order to increase the revenues and in September 1997 the government agreed on an economic program supported by the IMF. Despite the interventions which were foreacasted to improve the overall performance, the engagement of the foreign institutions made the instability to go worst. The decree of 1997, after a formal meeting of ex-president
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