DECOUPLING GROWTH AND EMISSIONS: ECONOMETRIC EVIDENCE FROM SELECTED AFRICAN ECONOMIES

Abstract

The nexus between economic growth, energy consumption, and climate change aligned with
different emission levels has been a growing contention among the stakeholders. The narrative
of striking a balance between economy, climate, and resource management is one of the
primary fundamentals of recent Sustainable development goals. African nations are not only
geographically important but also economically significant which is mostly ignored in most
research. This study employed the autoregressive distributed lag (ARDL) approach as it
explains how economic variables change over time. To examine the overall impact of energy
consumption (per capita), renewable energy consumption (per capita), and CO2 emissions on
GDP, three African nations—Nigeria, South Africa, and Morocco—have been selected. .
According to this study, renewable energy may impede economic progress. On the other hand,
over time, renewable energy sources do hurt CO2 emissions but a positive effect on measures
of economic growth like GDP per capita. African nations have the option to use renewable
energy sources, which can lessen environmental harm and promote general economic
expansion. This study can help emerging nations find strategies to attain sustainable
development without reverting to the carbon-intensive models of the past. Policymakers can
use this information to determine which economic sectors use the most energy and to evaluate
the effects of switching to low-carbon alternatives. This study also impacts the security of the
energy supply because reliance on renewable energy sources lessens reliance on finite and
unstable fossil fuel supplies. Additionally, it advocates for the implementation of financial
incentives that encourage innovation and private investment in sustainable practices, such as
carbon taxes and green financing.