CO2 emissions, urban population, energy consumption and economic growth in selected African countries: A Panel Smooth Transition Regression (PSTR)

• DOI: http://doi.org/10.1111/opec.12184
• Published date: 01 September 2020
• Date: 01 September 2020
• Author: Joel Hinaunye Eita,Teboho Jeremiah Mosikari

CO

2

emissions, urban population, energy

consumption and economic growth in

selected African countries: A Panel Smooth

Transition Regression (PSTR)

Teboho Jeremiah Mosikari* and Joel Hinaunye Eita**

*Department of Economics, North-West University, Mafikeng Campus, Mmabatho, South Africa.

Email: teboho.mosikari@nwu.ac.za

**College of Business and Economics, School of Economics, University of Johannesburg, Johannesburg,

South Africa. Email: jeita@uj.ac.za

Abstract

This study investigates the non-linear impact of urban population, energy consumption and

economic growth on carbon emissions in selected African economies, for the period 2005–2019.

The investigation is conducted through the application of non-linear panel smooth transition

regression (PSTR) estimation technique. The results reveal a rejection of the null hypothesis of

linearity, in favour of non-linearity. The results provide evidence of the presence of environmental

Kuznets curve (EKC). Energy consumption has a positive impact on carbon emissions in both

regimes. An increase in urban population causes a reduction in carbon emissions. The study

recommends that in an effort to accelerate economic growth, policymakers should implement

policies aimed at achieving low carbon mechanisms, such as green infrastructure and renewable

energy systems, which reduce energy consumption and greenhouse gas emissions. It is therefore

important for the selected African economies to come up with programmes that increase awareness

about the risk of carbon emissions.

Key words: GDP growth, carbon emissions, threshold level

1. Introduction

There have been a growing and unprecedented signs of global warming over the last few

decades. The increase in global warming prompted researchers to investigate the drivers

and consequences of global warming which is generally proxied by carbon dioxide

(CO2) emissions. Global warming is generally defined as the climate change caused by a

rise in the concentration of greenhouse gases in the atmosphere (Livingston et al., 2013).

This is supported by Hossain (2012) who claims that extensive use of energy and natural

JEL classification: Q4, R0, C50.

©2020 Organization of the Petroleum Exporting Countries. Published by John Wiley & Sons Ltd, 9600 Garsington

Road, Oxford OX4 2DQ, UK and 350 Main Street, Malden, MA 02148, USA.

319