The Moderating Role of Green Energy and Energy-Innovation in Environmental Kuznets: Insights from Quantile-Quantile Analysis

19 Pages Posted: 1 Jun 2020

See all articles by Hammed Oluwaseyi Musibau

Hammed Oluwaseyi Musibau

Tasmanian School of Business and Economics, University of Tasmania, Australia

Rabindra Nepal

School of Accounting, Economics, and Finance, University of Wollongong

Joaquin Vespignani

University of Tasmania - School of Economics and Finance

Maria Yanotti

University of Tasmania; Financial Research Network (FIRN)

Multiple version iconThere are 2 versions of this paper

Date Written: May, 2020

Abstract

The recent environmental challenges in Africa that emanated from global warming, human activity, limited access to electricity and overexploitation of natural resources have contributed to the growth of carbon dioxide (CO2) emissions in the region. This paper empirically investigates the moderating role of green energy consumption and energy innovation in the environmental Kuznets curve for the Sub-Saharan African (SSA) region using data spanning from 1980 to 2018. Our threshold model found that at least 54 percent of the population needs access to energy innovation before the region could be safe from environmental degradation. We conclude that investment in green energy, energy innovation and conservation of natural resources will help to mitigate environmental degradation in SSA in the long run. Policies should be targeted towards encouraging the consumption of green energy, and more investment in energy innovation beyond the estimated threshold will save the region from pollution and its implications.

Keywords: Environmental Kuznets Curve, Green energy, Energy innovation, CO2 emission, SSA countries, Quantile-Quantile regression

JEL Classification: E10, C20, Q40

Suggested Citation

Musibau, Hammed Oluwaseyi and Nepal, Rabindra and Vespignani, Joaquin and Yanotti, Maria, The Moderating Role of Green Energy and Energy-Innovation in Environmental Kuznets: Insights from Quantile-Quantile Analysis (May, 2020). Globalization and Monetary Policy Institute Working Paper No. 385, Available at SSRN: https://ssrn.com/abstract=3614206 or http://dx.doi.org/10.24149/gwp385

Hammed Oluwaseyi Musibau (Contact Author)

Tasmanian School of Business and Economics, University of Tasmania, Australia ( email )

13 Monash St. Mowbay, Launceston
Launceston, TX 7248
Australia
61415388734 (Phone)

Rabindra Nepal

School of Accounting, Economics, and Finance, University of Wollongong ( email )

Northfields Avenue
Wollongong, New South Wales 2522
Australia

Joaquin Vespignani

University of Tasmania - School of Economics and Finance ( email )

Commerce Building,
Sandy Bay Campus
Sandy Bay, TAS, Tasmania 7005
Australia

Maria Yanotti

University of Tasmania ( email )

French Street
Sandy Bay
Tasmania, 7250
Australia

Financial Research Network (FIRN)

C/- University of Queensland Business School
St Lucia, 4071 Brisbane
Queensland
Australia

HOME PAGE: http://www.firn.org.au

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