Energy Consumption, Capital Investment and Environmental Degradation: The African Experience

Ekundayo Mesagan and Chidi Olunkwa ()
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Chidi Olunkwa: University of Lagos, Nigeria

No 20/022, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This study investigates the effects of energy consumption and capital investment on environmental degradation in selected African countries between 1981 and 2017 using panel cointegration approaches. The Fully Modified and the Dynamic Ordinary Least Squares results affirm that energy consumption positively affects carbon emissions in Algeria, Nigeria, Morocco, and in the panel. At the same time, both also confirm that capital investment positively and significantly impacts carbon emissions in the region. Again, results show that capital investment augments energy use to reduce carbon emissions in Africa significantly. This implies that capital investment can provide needed impetus to reduce environmental degradation in the continent. The study, therefore, recommends that African countries should focus on energy conservation policies to reduce the adverse effect of energy use on carbon emissions.

Keywords: Electricity Consumption; Capital investment; Environmental Degradation; Africa (search for similar items in EconPapers)
JEL-codes: Q40 Q42 Q43 Q54 Q57 (search for similar items in EconPapers)
Pages: 18
Date: 2020-01
New Economics Papers: this item is included in nep-ara and nep-ene
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Forthcoming in: Forum Scientiae Oeconomia

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http://publications.excas.org/RePEc/exs/exs-wpaper ... n-and-Investment.pdf Revised version, 2020 (application/pdf)

Related works:
Working Paper: Energy Consumption, Capital Investment and Environmental Degradation: The African Experience (2020)
Working Paper: Energy Consumption, Capital Investment and Environmental Degradation: The African Experience (2020)
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