Renewable energy, economic growth, and CO2 emissions contained Co-movement in African oil-producing countries: A wavelet based analysis. (November 2022)

• Record Type: Journal Article
• Authors: Abban, Olivier Joseph; Hongxing, Yao; Nuta, Alina Cristina; Dankyi, Alex Boadi; Ofori, Charles; Cobbinah, Joana
• Is Part Of: Energy strategy reviews. Volume 44(2022)
• Publication Date: 2022-11
• Subjects: Renewable energy -- Technological innovation -- Globalization -- CO2 emissions -- Wavelet coherence -- Africa; Energy policy -- Periodicals; 333.7905
• DOI: 10.1016/j.esr.2022.100977
• Languages: English
• ISSNs: 2211-467X

Abstract

Abstract: Electricity power generation has gradually expanded in Africa, especially in oil-producing countries. Although natural gas and coal produced most of the electricity, renewable energy sources (REW) played a significant role in total electricity generation, with hydro being the most prevalent. This study examined the nexus between renewable energy, CO2 emissions, and economic growth in terms of time, space, and the combined time-frequency sphere using wavelet analysis. The following are the primary research questions: (a) Do the employed variables under examination have a long-term relationship? (b) What is the strength of the nexus between renewable energy, economic growth, and CO2 emissions at different time and frequency frames? (c) Do the independent variables have an anti-cyclic association with CO2 emissions? The empirical results confirmed that: (a) there is evidence of a short-run association among the variables at different frequency scales. (b) The wavelet coherence results provide evidence of a strong association among the variables in the long-run estimation, which is supported by the Trace analysis and the Toda-Yamamoto causality. (c) The findings revealed that REW and CO2 are out of phase and have an anti-cyclic impact, with REW driving the cycle. Accordingly, appropriate policy measures are advocated to ensure that these African economies under study are on a path to sustainability. Highlights: Renewable energy and CO2 emissions are out of phase and have an anti-cyclic impact. CO2 emissions and Globalization obtained a positive co-movement in the short run. Trade openness and CO2 emissions obtained a weaker association in the long-term. CO2 emissions and GDP was observed to have a long-run causality association.