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Causal Relationships between Energy Consumption, Economic Growth and CO2 Emission in Sub-Saharan: Evidence from Dynamic Simultaneous-Equations Models

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DOI: 10.4236/me.2019.109136    197 Downloads   435 Views Citations
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ABSTRACT

The purpose of this study is to investigate the interrelationship between energy-CO2 emission-GDP for Sub-Saharan countries covering the period 2000-2012. To circumvent this issue we use dynamic simultaneous-equation. Our empirical findings show that there is a bidirectional causal relationship between energy consumption and economic growth. The results support also a bidirectional relationship between energy consumption and electricity consumption, but variables reflecting pollution affect negatively electricity consumption. As well the rise in economic growth increases the level of CO2 emissions and vice versa.

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Zaidi, S. and Ferhi, S. (2019) Causal Relationships between Energy Consumption, Economic Growth and CO2 Emission in Sub-Saharan: Evidence from Dynamic Simultaneous-Equations Models. Modern Economy, 10, 2157-2173. doi: 10.4236/me.2019.109136.

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