The Impact of Renewable Energy, Economic and Population Growth on CO2 Emissions in the East African Region: Evidence from Common Correlated Effect Means Group and Asymmetric Analysis

Abstract

This study aims to examine the asymmetric nexus between CO2 emissions and renewable energy and economic and population growth in seven East African countries (EACs) at the regional level and country levels. Common correlated effect means group (CCEMG), nonlinear autoregressive distributed lagged (NARDL), and causality tests were employed for the panel data from 1980 to 2016. The main findings are as follows: (1) Renewable energy consumption negatively affects CO2 emissions, while economic and population growth positively affect CO2 emissions at the regional level. (2) The findings of asymmetric and symmetric linkages between CO2 emissions and its determinants (economic and population growth and renewable energy) are very volatile across the country levels. (3) The causality hypotheses are different across the country and regional levels. (4) This study shows the renewable energy growth nexus, wherein renewable energy positively affects economic growth at the regional level. Lastly, the study suggests potential policy implications for effectively reducing CO2 emissions as well as growing the economy at the regional level.

The relationship between health expenditure, CO2 emissions, and economic growth in the BRICS countries—based on the Fourier ARDL model

“…Their study found that there is a two-way symmetric relationship between economic growth and carbon dioxide emissions. Namahoro et al ( 2021 ) used panel data from 1980 to 2016, using nonlinear autoregressive distribution lag (NARDL) and causality tests, to study the population growth of seven East African countries (EACs) at the regional and national levels and the relationship between economic growth, carbon dioxide, and energy consumption. Their research found that there is an asymmetric relationship between economic growth and CO 2 emissions in different countries.…”

“…From our literature review, some scholars have recently studied the ARDL model (Adamu et al, 2020 ; Kong, 2021 ; Mongo et al, 2021 ; Yang et al, 2021a , b ), and some scholars use the NARDL model (Ghazouani, 2021 ; Namahoro et al, 2021 ), and Xiangyu et al ( 2021 ) use the QARDL model for empirical testing. The Fourier ARDL model, we used, is similar to the newly developed ARDL, but it uses bootstrap Monte Carlo simulation to make the results of the variable test more delicated.…”

How Do Renewable Energy, Economic Growth and Natural Resources Rent Affect Environmental Sustainability in a Globalized Economy? Evidence From Colombia Based on the Gradual Shift Causality Approach

“…Using the ARDL, Ali et al (2021) detected a positive relationship between economic growth and CO 2 emissions in Pakistan covering 1971-2014. Namahoro et al (2021) investigated the asymmetric association between CO 2 emissions and economic growth in seven East African countries. The empirical analysis uncovered that economic growth has a positive linkage with CO 2 emissions at the regional level; however, across the country level, the association was volatile.…”

Does Industrial Transfer Change the Spatial Structure of CO2 Emissions?—Evidence from Beijing-Tianjin-Hebei Region in China

“…Therefore, industrial transfer may indirectly affect CO 2 emissions by acting on economic development. With the development of China’s economy and the improvement of people’s living standards, residents’ household consumption has become an important source of energy consumption [ 46 ], and the increase in population has proven to be one of the main factors that promote CO 2 emissions [ 47 , 48 ].To some extent, industrial transfer means labour force transfer because upgrading the regional industrial structure may become the pull force of population migration [ 34 ]. Therefore, industrial transfer may have a significant impact on CO 2 emissions through its impact on the population.…”