Asymmetric Impact of Energy Utilization and Economic Development on Environmental Degradation in Somalia

Abstract

While there are enormous studies on climate change in stable countries, climate policy perspectives from conflict-prone regions including Somalia are limited. This study investigates the asymmetric impact of energy and economic growth on environmental degradation in Somalia—by employing nonlinear autoregressive distributed lag model (NARDL) and causal techniques from 1985 to 2017. We find asymmetric long-term cointegration among the variables, whereas energy consumption and economic growth asymmetrically affect environmental degradation. Besides, the causal inferences reveal unidirectional causality from environmental pollution to positive change in energy consumption. Additionally, we find unidirectional causality from negative shock in economic growth to positive shock in economic growth. Moreover, a bidirectional causality is observed between population growth and negative change in economic growth. A unidirectional causality is confirmed from positive shock in economic growth to population growth—from negative change in economic growth to negative shock in energy consumption—from positive change in economic growth to positive shock in energy consumption—and negative change in energy consumption to population growth. This calls for the implementation of clean energy investment policies, good farming methods, and improved grazing land policies. The adoption of these policies will improve both environmental quality and sustained economic development.

Examining Awareness and Preferences for Green Finance Among Commercial Banks in Somalia

“…Severe weather variations may obliterate this buffering mechanism, making rural communities more vulnerable to shocks. Major flooding occurrences in the country reduce agricultural land productivity owing to soil logging, causing loss of fertile topsoil and deforestation [22]. The loss of fertile topsoil through soil erosion has also been accelerated by strong winds, which in turn reduces land productivity.…”

“…The loss of fertile topsoil through soil erosion has also been accelerated by strong winds, which in turn reduces land productivity. High temperatures have caused the failure of agricultural harvests as a result of higher evapotranspiration, reduced water availability, and increased insect invasion [22]. By the late 1980s, nearly all of Somalia's floodplain woods had been eradicated to make way for irrigated agriculture.…”