Threshold effects of energy mix on environmental quality

Nassibou Bassongui (), Doriane Nicole Nomo Alinga () and Dieudonné Mignamissi ()
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Nassibou Bassongui: University of Abomey-Calavi
Doriane Nicole Nomo Alinga: Université Félix Houphouët-Boigny
Dieudonné Mignamissi: University of Yaoundé II-Soa

Journal of Bioeconomics, 2021, vol. 23, issue 2, No 3, 163-178

Abstract: 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.

Keywords: Energy mix; Environmental quality; Threshold effects (search for similar items in EconPapers)
JEL-codes: C33 Q4 Q5 (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (2)

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DOI: 10.1007/s10818-020-09305-5

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