Breaking down the barriers to a green Africa: Detangling the overlapping issues of fossil fuel energy consumption, resource richness, and economic growth

Rasheed O. Alao, Ifedolapo O. Olanipekun, Akinwumi Sharimakin and Temitope P. Olanipekun

Resources Policy, 2025, vol. 109, issue C

Abstract: Natural resources are important ingredients of economic growth and fossil fuel energy, but these have environmental consequences. It is common to analyse causal relationships among these determinants of environmental quality. This study deviates from the usual by analysing the three-way correlation impact among CO2, fossil fuel consumption, and growth, instrumenting total natural resources rents, urbanization, and trade openness. The study employs generalized method of moments and dynamic panel simultaneous equations techniques to examine Africa between 2000 and 2021. The study establishes that fossil fuel consumption plays the most significant role in Africa's environmental challenges. However, economic growth in West Africa is more dependent on fossil fuel consumption than other African regions. Economic growth induces carbon emissions in Kenya, Tanzania, Ethiopia, Egypt, Morocco, Sudan, Rep. of Congo, and Mauritius, but it reduces carbon emissions in Nigeria, Togo, Cameroon, and Botswana. Natural resources rent increases carbon emissions in Benin, Angola, and Mauritius, but this is reduced in Senegal and Sudan. Fossil consumption reduces by an increase in resources rent in Ghana, Senegal, Togo, Tunisia, Libya, Angola, Botswana, and Namibia, and by a decrease in resources rent in Cote d’Ivoire, Niger, Sudan, and South Africa. In conclusion, Africa requires a proactive heat decarbonization plan in energy-intensive industries, electricity, transportation, and resource development. In addition to garnering support from international institutions, this study recommends the establishment of the African Union Energy Policy Research Institute to partner with the Energy Policy Research Group of Europe to model workable solutions to reduce CO2 emissions in Africa.

Keywords: Africa; Fossil fuel energy consumption; Growth; Total natural resources rent; Carbon emissions; PANICCA (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:109:y:2025:i:c:s0301420725002624

DOI: 10.1016/j.resourpol.2025.105720

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