Modeling the linkages among CO2 emission, energy consumption, and industrialization in sub-Saharan African (SSA) countries

Over the past two decades, global CO2 emissions have dramatically increased. In this context, this research aims to investigate a novel interaction between energy use, industrialization, and CO2 emissions as well as examine the underlying causal pathways with the implementation of more robust econometric methods to achieve valid and reliable results. Using estimation methods of AMG, CCEMG, and DCCEMG, this study shows that in the long-term energy use, industrialization, urbanization, and fossil fuel consumption have a non-significant positive impact on CO2 emissions for SSA countries with the exception of energy use depicting a significant impact. The documented results and findings are robust as compared to other studies. Furthermore, the study portrays the causal front as a bi-directional causal pathway between CO2 emissions, energy use, industrialization, and fossil fuel consumption with a uni-directional causal route to urbanization. Many of the variables are held to be causative agents of one another. The study suggests that policies that promote energy conservation and reduce CO2 emissions can be useful in achieving a lower emission rate. Policymakers and corporations should also abide by the laws and regulations on emissions mitigation. Companies need to invest in R&D as much as governments encourage business growth and development to help minimize emissions and degrade the environment. Similarly, the government should empower industries and households to acquire emission-reduction machinery.