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Environment-energy-growth nexus in Sub-Saharan Africa: The role of intermediate goods

Author

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  • Mohamed Amine Boutabba
  • Diadié Diaw
  • Albert Lessoua
Abstract
This paper examines the way trade in intermediate goods may influence carbon emissions using data from 17 Sub-Saharan African countries for 1995–2013. Previous studies have discussed carbon emission drivers, but little attention has been paid to the contribution of trade in intermediate goods, which involve international production fragmentation. Using time-series techniques, our results reveal that trade in intermediate goods is a mitigating factor in carbon emissions for a panel of Sub-Saharan African countries. There is evidence here to support the Environmental Kuznets Curve hypothesis. However, the turning point appears to be higher for intermediate trade imports, suggesting that environmental concerns are taken into account differently for imports and exports. Moreover, results show long-run bidirectional causality between carbon emissions, income, and intermediate goods trade; long-run unidirectional causality running from energy consumption to income and carbon emissions; and unidirectional causality running from trade in intermediate goods to carbon emissions in the short run. These findings suggest that national authorities should encourage trade in intermediate goods, develop the use of cleaner energy sources, and focus on public awareness on energy efficiency and clean environment, since these countries have increasingly integrated global value chains, even though most remain exporters of primary products.

Suggested Citation

  • Mohamed Amine Boutabba & Diadié Diaw & Albert Lessoua, 2018. "Environment-energy-growth nexus in Sub-Saharan Africa: The role of intermediate goods," International Economics, CEPII research center, issue 156, pages 254-267.
    • Handle: RePEc:cii:cepiie:2018-q4-156-18
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    File URL: https://www.sciencedirect.com/science/article/pii/S2110701717301506
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    Cited by:

    1. Ekonomou, George & Halkos, George, 2023. "Is tourism growth a power of environmental‘de -degradation’? An empirical analysis for Eurozone economic space," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 1016-1029.
    2. Chimere O. Iheonu & Ekene ThankGod Emeka & Simplice A. Asongu & Princewill U. Okwoche, 2022. "Foreign Investment, International Trade and Environmental Sustainability: Exploring Ecological Footprints in 37 African Countries," Working Papers 22/068, European Xtramile Centre of African Studies (EXCAS).
    3. Wei Zhen & Quande Qin & Lei Jiang, 2022. "Heterogeneous Domestic Intermediate Input-Related Carbon Emissions in China’s Exports," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 81(3), pages 453-479, March.
    4. Destek, Mehmet Akif & Manga, Muge, 2020. "Technological Innovation, Financialization and Ecological Footprint: Evidence from BEM Economies," MPRA Paper 114151, University Library of Munich, Germany.
    5. Vahid Mohamad Taghvaee & Mehrab Nodehi & Abbas Assari Arani & Yaghoob Jafari & Jalil Khodaparast Shirazi, 2023. "Sustainability spillover effects of social, environment and economy: mapping global sustainable development in a systematic analysis," Asia-Pacific Journal of Regional Science, Springer, vol. 7(2), pages 329-353, June.
    6. Longe Adedayo Emmanuel & Omitogun Olawunmi & Adelokun Oluwole Oluniyi & Adebayo Emmanuel Olajide & Muhammad Shehu, 2020. "The Impact of Trade and Transport Services on the Environment in Africa," Economic Themes, Sciendo, vol. 58(3), pages 415-439, September.

    More about this item

    Keywords

    Carbon emissions; Energy consumption; Intermediate goods; Sub-Saharan Africa;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • F64 - International Economics - - Economic Impacts of Globalization - - - Environment
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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