Toward Environmental Sustainability: The Nexus between Agriculture, Renewable Energy, and Economic Growth in Mitigating CO2 Emissions in Somalia

Ali Yusuf Hassan, Mohamed Abdukadir Mohamed, Mohamed Abdirahman Ahmed, Mahad Abdiwali Mohamed and Bashir Mohamed Osman
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Ali Yusuf Hassan: Faculty of Economics, SIMAD University, Mogadishu, Somalia
Mohamed Abdukadir Mohamed: Faculty of Management Sciences, SIMAD University, Mogadishu, Somalia
Mohamed Abdirahman Ahmed: Faculty of Management Sciences, SIMAD University, Mogadishu, Somalia
Mahad Abdiwali Mohamed: Faculty of Management Sciences, SIMAD University, Mogadishu, Somalia
Bashir Mohamed Osman: Faculty of Economics, SIMAD University, Mogadishu, Somalia

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 6, 127-135

Abstract: This research investigates the intricate relationships between agriculture, renewable energy, economic growth, and carbon dioxide (CO2) emissions in Somalia from 1991 to 2022. This study uses the Autoregressive Distributed Lag (ARDL) model and Granger causality tests to understand their impact on environmental sustainability. ARDL results reveal a negative role of agriculture and renewable energy on CO2 in the short and long term. The country's reliance on fossil fuels and biomass further intensifies CO2 emissions. While economic growth is essential for improving living standards, it positively correlates with CO2 emissions in the short and long term, emphasizing the challenge of decoupling economic development from environmental degradation. Domestic investment has a short-run relation only to CO2 emissions. In Granger causality tests, the results indicated that Agriculture and domestic investment have bidirectional causality to carbon dioxide emissions. On the other hand, renewable energy, economic growth, and domestic investment have unidirectional causality to Agriculture in Somalia, while domestic investment has bidirectional causality to renewable energy and economic growth. The study recommends implementing comprehensive and integrated approaches to prioritize sustainable development strategies, clean energy alternatives, and efficient agricultural practices. Promoting economic growth while also focusing on capacity-building and awareness campaigns is essential. Collaborating with the international community on climate change mitigation and sustainable development initiatives can further support Somalia's journey toward environmental sustainability.

Keywords: Renewable Energy; CO2 Emissions; Agriculture; Domestic Investment; Somalia (search for similar items in EconPapers)
JEL-codes: C22 O55 Q42 Q53 (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2024-06-13

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