Threshold Effects of Energy Mix on Environmental Quality

Nassibou Bassongui (), Doriane Nicole Nomo Alinga and Dieudonné Mignamissi
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Nassibou Bassongui: UAC - Université d’Abomey-Calavi = University of Abomey Calavi
Doriane Nicole Nomo Alinga: UFHB - Université Félix Houphouët-Boigny [Abidjan, Côte d'Ivoire]
Dieudonné Mignamissi: Faculty of Economics and Management, University of Yaoundé II - Soa

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Abstract: This paper empirically examines the nexus between energy consumption and the environmental quality conditioned to the energy mix in sub-Saharan African countries over the period 1990–2016. Using the panel threshold regression developed by Hansen (Econometrica 68:575–603, 1999) including 22 countries, the environmental quality is measured by the CO2 emissions. Results show that there is a non-linear relationship between energy consumption and CO2 emissions, and two threshold values of energy mix were found (68.53% and 88.86%). Then, our findings argue that energy consumption increases CO2 emissions when the energy mix is below 68.53%. However, when the energy mix is above 88.86%, energy consumption leads to a significant reduction in CO2 emissions. In addition, Gross Domestic Product and trade openness increase CO2 emissions, while rural population growth has a negative effect on CO2 emissions. Therefore, to achieve their environmental quality objectives, Sub-Saharan African countries have to focus their energy policies on renewable energy sources.

Date: 2021-01-04
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Published in Journal of Bioeconomics, 2021, 23 (2), pp.163-178. ⟨10.1007/s10818-020-09305-5⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-03287892

DOI: 10.1007/s10818-020-09305-5

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