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Threshold effects of energy mix on environmental quality

  • Published:
Journal of Bioeconomics

Abstract

This paper empirically examines the nexus between energy consumption and the environmental quality conditioned to the energy mix in sub-Saharan African countries over the period 1990–2016. Using the panel threshold regression developed by Hansen (Econometrica 68:575–603, 1999) including 22 countries, the environmental quality is measured by the CO2 emissions. Results show that there is a non-linear relationship between energy consumption and CO2 emissions, and two threshold values of energy mix were found (68.53% and 88.86%). Then, our findings argue that energy consumption increases CO2 emissions when the energy mix is below 68.53%. However, when the energy mix is above 88.86%, energy consumption leads to a significant reduction in CO2 emissions. In addition, Gross Domestic Product and trade openness increase CO2 emissions, while rural population growth has a negative effect on CO2 emissions. Therefore, to achieve their environmental quality objectives, Sub-Saharan African countries have to focus their energy policies on renewable energy sources.

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Notes

  1. The VIF calculates centred or uncentred variance inflation factors (VIFs) for the independent variables specified in a linear regression model.

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Authors and Affiliations

  1. University of Abomey-Calavi, Godomey, Benin

    Nassibou Bassongui

  2. Université Félix Houphouët-Boigny, Abidjan, Ivory Coast

    Doriane Nicole Nomo Alinga

  3. University of Yaoundé II-Soa, Soa, Cameroon

    Doriane Nicole Nomo Alinga & Dieudonné Mignamissi

Authors
  1. Nassibou Bassongui
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  2. Doriane Nicole Nomo Alinga
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  3. Dieudonné Mignamissi
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Corresponding author

Correspondence to Nassibou Bassongui.

Appendix

Appendix

See Tables 2, 3, 4, 5, 6, 7, 8, 9, 10, 11 and 12.

Table 2 List of countries included in the sample
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Table 3 Variable descriptions
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Table 4 Summary statistics
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Table 5 Correlation matrix
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Table 6 Variance inflation factor test
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Table 7 Heterogeneity test
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Table 8 Fisher-type panel unit root test (Choi 2001)
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Table 9 Dumetriscu and Hurlin (2012) panel causality test
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Table 10 Linearity test
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Table 11 Determining the number of plans
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Table 12 Countries’ energy mix rate
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Bassongui, N., Nomo Alinga, D.N. & Mignamissi, D. Threshold effects of energy mix on environmental quality. J Bioecon 23, 163–178 (2021). https://doi.org/10.1007/s10818-020-09305-5

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  • DOI: https://doi.org/10.1007/s10818-020-09305-5

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