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The determinants and interrelationship of carbon emissions and economic growth in African economies: Fresh insights from static and dynamic models

Solomon Prince NathanielDepartment of Economics University of Lagos Akoka NigeriaSuborna BaruaDepartment of International Business University of Dhaka Dhaka BangladeshHamid Yahya HussainDepartment of Economics and Finance Institute of Business Administration Karachi PakistanBosede Ngozi AdeleyeDepartment of Economics and Development Studies Covenant University Ota Ogun State Nigeria
2020en
ABI

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This study explores the interrelationship between CO 2 emissions and economic growth in selected Africa economies from 1990 to 2014 providing evidence from both static and dynamic models. Results show that increases in energy use have a significant and positive effect on economic growth; which goes to show that growth in Africa is actually energy dependent. Further findings suggest that CO 2 emissions have no significant contemporaneous effect, however, a significant and negative effect at a one‐period lag on economic growth. The significance of the impacts is consistently confirmed by both the static and dynamic estimations. Also, trade adds to economic growth and also contributes to environmental deterioration in Africa. There is a dire need for Africa to adjust its energy portfolio by shifting to clean energy sources which will enhance sustainable economic growth without deteriorating the environment.

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