Ambivalent causal relationship between economic growth and carbon dioxide emissions in Benin

Fanougbo Avoce Viagannou ()
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Fanougbo Avoce Viagannou: Planning Department/ENEAM; Laboratory of Public Economy (LEP); University of Abomey-Calavi

Economics Bulletin, 2025, vol. 45, issue 2, 1043 - 1055

Abstract: The paper aims to verify the ambivalent causal relationship between economic growth and carbon dioxide emissions. The data used were obtained from the World Development Indicators database for the period of 2000-2023. The simultaneous equation model was used with three-stage least squares (3SLS). The results revealed that gross domestic product increased CO2 emissions by 0.787 and that CO2 emissions decreased gross domestic product by 0.375 at the threshold of 1%. However, to achieve growth in terms of environmental protection in Benin, it is necessary to invest more in ecotourism, renewable energy consumption, and activities capable of increasing the capacity for CO2 absorption and internal carbon storage.

Keywords: Ambivalent causal relationship; carbon dioxide emissions; economic growth; 3SLS (search for similar items in EconPapers)
JEL-codes: Q4 Q5 (search for similar items in EconPapers)
Date: 2025-06-30
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