The determinants and interrelationship of carbon emissions and economic growth in African economies: Fresh insights from static and dynamic models

This study explores the interrelationship between CO2 emissions and economic growth in selected Africa economies from 1990 to 2014 providing evidence from both static and dynamic models. Results show that increases in energy use have a significant and positive effect on economic growth; which goes to show that growth in Africa is actually energy dependent. Further findings suggest that CO2 emissions have no significant contemporaneous effect, however, a significant and negative effect at a one-period lag on economic growth. The significance of the impacts is consistently confirmed by both the static and dynamic estimations. Also, trade adds to economic growth and also contributes to environmental deterioration in Africa. There is a dire need for Africa to adjust its energy portfolio by shifting to clean energy sources which will enhance sustainable economic growth without deteriorating the environment.

Automated summary

This study reveals the close relationship between economic growth and energy use in Africa, showing that CO2 emissions have a significant negative impact on economic growth with a lag effect. The findings also highlight the dual role of trade in promoting economic growth and contributing to environmental deterioration on the continent. There is an urgent need for Africa to transition to clean energy sources to achieve sustainable economic growth without harming the environment.