The impact of renewable energy, economic growth and FDI on carbon emissions: An evidence of 15 African countries using panel cointegration regression models
Author(s)
Prince Asare Vitenu-Sackey , Jiang Hong Li ,
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Abstract
This paper adopts panel cointegration (FMOLS and DOLS) methodologies to establish the relationship among carbon dioxide emission, renewable energy consumption and foreign direct investments for a panel of 15 African countries for the period 2000 – 2014. The empirical results affirm a long run relationship among the variables. The long run estimates of the variables aver that renewable energy consumption is negatively related to carbon dioxide emission meaning renewable energy tends to reduce the pollution that results from carbon emission. Meanwhile, foreign direct investment (FDI) has a positive relationship with carbon emission; in other words, FDI increases or causes a rise in carbon emission in the long run. Some recommendations are proposed to ensure the reduction of carbon emission. Governments are advised to; expand the use of renewable energy consumption, create and build low carbon economies, control the activities of pollutants, reduce tropical deforestation and increase vehicle fuel efficiency and support other solutions that reduce oil use
Keywords
Carbon emission; Renewable energy consumption; FDI; FMOLS; DOLS
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