Energy consumption, economic growth and carbon emissions: Cointegration and causality evidence from selected African countries

This paper examines the long-run and causal relationships among energy consumption, carbon dioxide (CO2) emissions and economic growth for a sample of 12 selected Sub-Sahara African countries. It applies the bounds test to cointegration and Granger causality test to annual data covering the period 1971-2010. The empirical results are mixed across countries. In the long-run, energy consumption and economic growth are associated with increase in atmospheric pollution in most countries. Results from the Granger causality tests show evidence of economic growth causing CO2 emissions in the short-run in Benin, Democratic Republic of Congo, Ghana, Nigeria and Senegal, implying that economic expansion cannot be achieved without affecting the environment. Evidence of reverse causality running from CO2 emissions to economic growth has been found for Gabon, Nigeria and Togo, indicating that environmental policies aiming at reducing air pollution may have adverse effects on economic growth. Moreover, bidirectional causality between economic growth and CO2 emissions has been found in the short-run for Nigeria and in the long-run for Congo and Gabon. In the long-run, energy consumption and economic growth cause CO2 emissions in Benin, Cote d'Ivoire, Nigeria, Senegal, South Africa and Togo.