Exploring the contribution of energy price to carbon emissions in African countries

Abstract

The increasing level of greenhouse gas carbon emission currently exacerbates the devastating effect of global warming on the Earth's ecosystem. Energy usage is one of the most important determinants that is increasing the amount of carbon gases being released. Simultaneously, the level of energy usage is derived by the price and therefore, this study examines the contribution of energy price to carbon gas emissions in thirteen African nations for the period spanning 1990 to 2017. It does this by utilizing the Cross-sectional Dependence (CD), Augmented Mean Group (AMG) and Pooled Mean Group (PMG) panel modelling methods. The findings of the AMG model suggest that a 1% increase in energy price leads to a 0.02% decerease in carbon emission. The results further reveal that a 1% increase in energy intensity and technological innovation lead to 0.04% and 3.65% increase in carbon emission, respectively, in the selected African countries. Findings will help policymakers to implement effective energy price policies to reduce carbon emissions and achieve sustainable development goals especially in the emerging economies of Africa.

The effect of energy prices, energy losses, and renewable energy use on CO2 emissions in energy-importing developing economies in the presence of an environmental Kuznets curve

“…In addition, Bhattacharya et al ( 2017 ), Destek et al ( 2018 ), Wang et al ( 2021 ), Zafar et al ( 2022 ), and Gyimah et al ( 2022 ) supports the results that the use of renewable energy reduces CO 2 emissions. It is also consistent with the results of the study by Shan et al ( 2021 ), Zhang et al ( 2021 ), and Umar et al ( 2021 ) state that the increase in energy prices improves environmental quality.…”

Exploring the Trend of Commodity Prices: A Review and Bibliometric Analysis

“…Similarly, Li and Leung [50], Mukhtarov et al [51], Karacan et al [52], and Mukhtarov et al [53] confirmed the role of energy prices on renewable energy consumption, and further affects the achievement of sustainable development goals. Umar et al [54] found that effective energy price policies can reduce carbon emissions and achieve SDGs; Ma et al [55], Sha et al [56], Lee and Chong [57], Guo et al [58], Malik et al [59], and Ike et al [60] also confirmed the same point.…”

Digital inclusive finance, agricultural green technology innovation and agricultural carbon emissions: Impact mechanism and empirical test

“…Econometric method is also the main research method in this field. The direct or indirect factors that stimulate the increase of carbon emissions include, but are not limited to, expansionary monetary, fiscal, commercial policies [11][12][13], economic development and financial development [14][15][16], shadow economy [17], income [18], fossil Fuel consumption and electricity consumption [19][20][21], industrialization and urbanization [22,23], FDI [24], deforestation [23] and population expansion [25], growth in energy demand and quality of energy [18,21,26,27], institutional quality [15,16], transport service growth [28], consumer spending [29], world tourism [30], trade openness [31], globalization [16,28], fiscal decentralization [32], energy prices [33], government spending [16], gross fixed capital formation [34], sustainable energy and military spending [35], etc.…”