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Abstract
The study examined the influence of carbon footprint on Economic Growth (EG) of selected
African countries. Quarterly time series data and panel data of five (5) African countries from
1980 to 2023 were sourced from the World Bank Development Index (WBDI) database. Statistical techniques of descriptive statistics, correlation analysis, stationarity test, cointegration test, Error Correction Model (ECM) and panel Vector Error Correction Model
(VECM) were employed to analyse the data. Findings show that four (4) out of five countries
traded-off Economic Growth to reduce carbon emissions in the long run. Thus, EKC
(Environmental Kuznet Curve) proposition is confirmed in these countries (Nigeria, Algeria, Libya, and Egypt). Also, electricity consumption, human capital, and trade openness are
significant channels via which renewable energy technology may affect the countries’ Economic Growth, although in different magnitude. In Africa, Economic Growth must be
traded-off in the long run to reduce the quantum of consumption carbon emission (CO2) in
the long run. Only trade openness is identified as a significant conduit via which renewable
energy technology impact the region’s Economic Growth. From the foregoing analysis, the
study concludes that better EKC hypothesis practice and favourable trade openness is a useful
tool for preventing environmental degradation process and promoting economic growth and
development in Africa.
African countries. Quarterly time series data and panel data of five (5) African countries from
1980 to 2023 were sourced from the World Bank Development Index (WBDI) database. Statistical techniques of descriptive statistics, correlation analysis, stationarity test, cointegration test, Error Correction Model (ECM) and panel Vector Error Correction Model
(VECM) were employed to analyse the data. Findings show that four (4) out of five countries
traded-off Economic Growth to reduce carbon emissions in the long run. Thus, EKC
(Environmental Kuznet Curve) proposition is confirmed in these countries (Nigeria, Algeria, Libya, and Egypt). Also, electricity consumption, human capital, and trade openness are
significant channels via which renewable energy technology may affect the countries’ Economic Growth, although in different magnitude. In Africa, Economic Growth must be
traded-off in the long run to reduce the quantum of consumption carbon emission (CO2) in
the long run. Only trade openness is identified as a significant conduit via which renewable
energy technology impact the region’s Economic Growth. From the foregoing analysis, the
study concludes that better EKC hypothesis practice and favourable trade openness is a useful
tool for preventing environmental degradation process and promoting economic growth and
development in Africa.
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