This study examines the impact of natural resource extraction, population, affluence, and trade openness on carbon dioxide (CO2) emissions and energy consumption in 17 sub-Saharan African (SSA) countries from 1971 to 2019, using the stochastic impacts on population, affluence, and technology (STIRPAT) model. The Westerlund and Kao cointegration tests were employed to determine long-run relationships among the variables. Pooled mean group autoregressive distributed lag (PMG-ARDL), panel fully modified ordinary least squares (FMOLS), and dimension group-mean panel dynamic ordinary least squares (DOLS) techniques were used to assess long-run multipliers. The findings of the study reveal that natural resource extraction, population, and income have a significant positive impact on energy consumption and CO2 emissions over an extended period in SSA countries. Findings suggest that an increase of 1% in income (affluence), natural resource extraction, and population, in the long run, will result in a rise of carbon emissions by 0.06% to 0.90% and an increase of 0.05% to 0.36% in energy consumption in the sampled SSA countries. Conversely, trade openness demonstrates a negative effect on energy consumption and CO2 emissions. This finding suggests that an increment of trade openness by 1% will lead to a reduction of 0.10% to 0.27% in the emission of carbon and a decrease of 0.05% to 0.09% in energy consumption over a long period. The study recommends that policymakers enforce stringent ecofriendly regulations, promote the adoption of green technologies and energy-saving sources, and reduce tariffs on ecofriendly commodities to enhance sustainable development in the region.
This paper aims to examine the effectiveness of international remittances on poverty. The equation explaining the determinants of poverty is analyzed using the fixed-effects regression model, and the equation examining the existence of a two-way relationship between poverty and international remittances is analyzed using the three-stage least squares model. The empirical findings reveal that there is a bi-directional relationship between poverty and international remittances. An increase in poverty levels triggers migration abroad, and remittances sent by immigrants to their country of origin reduce poverty. An increase in government spending and household income reduces poverty, while an increase in income inequality and inflation exacerbates poverty. Moreover, trade openness has a positive effect on international remittances, and official remittances become easier in financially developed economies as transaction costs decrease. By channeling international remittances, which are considered a stable source of finance, into the accumulation of physical and human capital, they contribute to economic development and increase their impact on poverty. This study contributes to the literature by using the most recent and comprehensive dataset and econometric methodology, and by differentiating the impact of international remittances on poverty by income group-specific effects as well as by region-specific effects.
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