The Nexus Between Renewable Energy Consumption, Financial Development, and Trade Openness Based on Environmental Quality in Uganda: An Application of the ARDL

John Bbale Mayanja, Brian Arinaitwe, Ronald Kasaijja, John Mutenyo and Edward Damulira Sengonzi
Additional contact information
John Bbale Mayanja: School of Economics, Makerere University, P.O Box 7062, Kampala, Uganda,
Brian Arinaitwe: Department of Economics Kansas State University, 327 Waters Hall, Manhattan, KS 66506, USA,
Ronald Kasaijja: National Planning Authority, P.O BOX 21432, Kampala, Uganda,
John Mutenyo: School of Economics, Makerere University, P.O Box 7062, Kampala, Uganda,
Edward Damulira Sengonzi: Ministry of Finance, Planning And Economic Development, P.O Box 8147, Uganda.

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 3, 711-718

Abstract: Environmental degradation is attributed to human activities associated with economic development. This study examines renewable energy consumption (REC), financial development (FD), trade openness, and environmental quality nexus in Uganda over the period 1990-2019 using the Autoregressive Distribution Lag (ARDL). Findings show that REC improves environmental quality both in the short and long run. In addition, while trade openness is negatively related to environmental quality in the short and long run, a negative correlation exists between FD and environmental quality only in the long run. Furthermore, economic growth has a positive relationship with environmental quality in the short run while in the long run, GDP2 improves environmental quality. However, the results from the study find no statistical relationship between FDI and environmental quality, and thus neither the pollution haven nor pollution halo hypotheses are confirmed in the Ugandan case. This paper does not only recommend investing more in renewable energy development to improve the quality of the environment but also in financial sector development to support investments that promote a low-carbon and green economy.

Keywords: Environmental Quality; Carbon Dioxide Emissions; Financial Development; Trade Openness; Renewable Energy Consumption; ARDL (search for similar items in EconPapers)
JEL-codes: C22 F18 Q20 Q43 Q53 (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.econjournals.com/index.php/ijeep/article/download/15023/7955 (application/pdf)
https://www.econjournals.com/index.php/ijeep/article/view/15023 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2024-03-73

Access Statistics for this article

International Journal of Energy Economics and Policy is currently edited by Ilhan Ozturk

More articles in International Journal of Energy Economics and Policy from Econjournals
Bibliographic data for series maintained by Ilhan Ozturk ().