The Impact of Renewable Energy and Economic Growth on Environmental Pollution: Using Second-Generation Panel Techniques

Abstract

This study examines the impact of economic growth, renewable energy consumption, and environmental stringency on environmental pollution within the framework of testing the environmental Kuznets hypothesis for 34 African countries during the period from 1990 to 2020 using second-generation panel estimation techniques. To ensure the stability of the variables, the study applied smoothing of the slopes, CADF, and CIPS unit root tests, and the Westerlund co-integration test to confirm the existence of a long-term balanced relationship between the variables based on the results obtained from the CCEMG model estimates of jointly correlated effects. The study confirmed the environmental Kuznets curve hypothesis in African countries, with the results indicating a relationship between growth and pollution in the form of an inverted “N”. Furthermore, it was found that the consumption of renewable energy reduced carbon dioxide emissions.