The Impact of Trade and Transport Services on the Environment in Africa

Longe Adedayo Emmanuel (), Omitogun Olawunmi (), Adelokun Oluwole Oluniyi (), Adebayo Emmanuel Olajide () and Muhammad Shehu ()
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Longe Adedayo Emmanuel: Centre for Petroleum, Energy Economics and Law, University of Ibadan, Ibadan, Oyo State, Nigeria
Omitogun Olawunmi: Department of EconomicsOlabisi Onabanjo University, Ago-Iwoye, Ogun State
Adelokun Oluwole Oluniyi: Centre for Petroleum, Energy Economics and Law, University of Ibadan, Ibadan, Oyo State, Nigeria
Adebayo Emmanuel Olajide: Economics Programme, College of Social and Management Sciences, Bowen University, Iwo, Osun State, Nigeria
Muhammad Shehu: Department of Social Sciences, Federal Polytechnic, Bida.Niger State, Nigeria

Economic Themes, 2020, vol. 58, issue 3, 415-439

Abstract: This study investigates the impact of trade and transport services on the environment in Africa. Secondary data for 21 countries spanning 2000 and 2014 were used and analysed using POLS, FE, RE and PMG. These techniques revealed diverse results. The Hausman test was used to decide between FE and RE in the study. The Hausman test accepts the FE result due to it 5% significant result. The POLS reveal that trade and economic growth reduces degradation in Africa, while transport services in the export and import sector and energy consumption increases degradation. Notably from the FE result, trade, energy consumption and economic growth showed a positive impact on environmental degradation in Africa, while transport services in the import and export sector reduces environmental degradation. For the PMG result, findings show that in the long-run, trade, transport services (export and import), energy consumption, and economic growth increase degradation in Africa. This implies as these activities increases in the long run, there are no measure to ensure environmental quality. In the short-run, trade and transport services in the import sector reduce degradation as many of the importation is dominated by improved technology products, while transport services in the export sector, energy consumption and economic growth positively impact on environmental degradation in Africa. The study concludes a mixed effect of trade and transport services on the environment in Africa. A major recommendation is that more energy efficient technologies should be used in Africa to meet the sustainable environment goal and this can be done by reviewing trade policy to encourage inflow of improved technology into the economies.

Keywords: Trade; transport services; energy use; economic growth; environmental degradation (search for similar items in EconPapers)
JEL-codes: C3 F18 Q56 R41 (search for similar items in EconPapers)
Date: 2020
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Persistent link: https://EconPapers.repec.org/RePEc:vrs:ecothe:v:58:y:2020:i:3:p:415-439:n:8

DOI: 10.2478/ethemes-2020-0024

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