Fossil Fuel Energy Consumption, Economic Growth, Urbanization, and Carbon Dioxide Emissions in Kenya

Jacob Otim, Susan Watundu, John Mutenyo and Vincent Bagire
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Jacob Otim: Kyambogo University, Uganda,
Susan Watundu: Makerere University Business School, Uganda,
John Mutenyo: College of Business and Management Sciences, Makerere University, Economic Analysis and Policy, Uganda,
Vincent Bagire: Department of Management Science, Makerere University Business School, Uganda.

International Journal of Energy Economics and Policy, 2023, vol. 13, issue 3, 457-468

Abstract: The increase in the level of CO2 emissions has triggered the global temperature to rise above the pre industrial levels. The unprecedented climate change has resulted in flooding and droughts that have displaced millions of people from their homes, plunged them into poverty, famine, and stunted economic growth, especially in countries with shoddy infrastructure. The large-scale use of fossil fuels across the globe, increase in urbanization and economic growth are likely to worsen the environmental quality. However, the proponents of the economic growth hypothesis do not admit that the consumption of fossil fuels and urban expansion, increase the level of CO2 emissions in the atmosphere. The current study examines the effects of fossil fuels consumption, economic growth, urbanization and CO2 emissions in Kenya over the period 1971 to 2014. The study follows a formal time series econometric estimation strategy and estimates the long-run model using an autoregressive distributed lag. The study findings show that economic growth and the uptake of fossil fuels increase CO2 emission, while urbanization reduces it. The study recommends phasing out subsidies for conventional energy supply, promoting energy efficiency and accelerating the development of clean energy technologies.

Keywords: CO2 emissions; fossil fuel energy consumption; economic growth; Cointegration; Granger causality; Kenya (search for similar items in EconPapers)
JEL-codes: K32 P18 Q35 Q43 (search for similar items in EconPapers)
Date: 2023
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2023-03-50

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