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Modeling Green Energy Consumption and Natural Resources Rents Impacts on Economic Growth in Africa: An Analysis from the Dynamic Panel ARDL Models and the Feasible Generalized Least Squares Estimator
Mumuni, S.; Mwimba, T. Modeling the Impact of Green Energy Consumption and Natural Resources Rents on Economic Growth in Africa: An Analysis of Dynamic Panel ARDL and the Feasible Generalized Least Squares Estimators. Cogent Economics & Finance, 2022, 11. https://doi.org/10.1080/23322039.2022.2161774.
Mumuni, S.; Mwimba, T. Modeling the Impact of Green Energy Consumption and Natural Resources Rents on Economic Growth in Africa: An Analysis of Dynamic Panel ARDL and the Feasible Generalized Least Squares Estimators. Cogent Economics & Finance, 2022, 11. https://doi.org/10.1080/23322039.2022.2161774.
Mumuni, S.; Mwimba, T. Modeling the Impact of Green Energy Consumption and Natural Resources Rents on Economic Growth in Africa: An Analysis of Dynamic Panel ARDL and the Feasible Generalized Least Squares Estimators. Cogent Economics & Finance, 2022, 11. https://doi.org/10.1080/23322039.2022.2161774.
Mumuni, S.; Mwimba, T. Modeling the Impact of Green Energy Consumption and Natural Resources Rents on Economic Growth in Africa: An Analysis of Dynamic Panel ARDL and the Feasible Generalized Least Squares Estimators. Cogent Economics & Finance, 2022, 11. https://doi.org/10.1080/23322039.2022.2161774.
Abstract
The concept of green energy is now at the forefront of development discourse, with the United Nations Sustainable Development Goals (SDGs) 7, 11, and 12 all aimed at promoting green energy consumption to combat the three planetary crises: climate change, biodiversity loss, and pollution. Similarly, issues regarding Africa’s natural resource curse have caused a stir in the growth and development literature for some time now and there is no sign that it will die out. This study, the first of its kind, simultaneously assesses the impact of green energy consumption and Africa’s natural resources rents on economic growth by applying the Feasible Generalized Least Square (FGLS) estimator and the dynamic panel models of the Pooled Mean Group (PMG) and Mean Group (MG) estimators on data from 1990 to 2020 for 24 selected African countries. The results show that green energy consumption has a short-run growth-limiting effect and a long-run growth-enhancing effect in Africa. The study also found evidence of the natural resource curse phenomenon in Africa. The study, therefore, calls for the advancement and usage of green energy for both domestic and industrial production in Africa. The study further calls for a revamp in the global tax policy to curb illicit financial activities and strengthening institutional quality for transparency and accountability in the entire value chain of natural resource management in Africa.
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
