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Analysis of the Link between CO2 Outflows, Energy Utilization, and Economic Development in a Developing Country: Evidence from Republic of Congo

Jean Baptiste Bernard Pea-Assounga

,

Hongxing Yao

,

Philip Agyei Peprah

,

Shaibu Ali

Jean Baptiste Bernard Pea-Assounga 1 ,

Hongxing Yao 1 Philip Agyei Peprah 1 Shaibu Ali 1 
  1. School of Finance and Economics, Jiangsu University, China. 1

Pages: 17-33

DOI: 10.18488/journal.13.2020.91.17.33

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Article History:

Received: 04 December, 2019
Revised: 10 January, 2020
Accepted: 14 February, 2020
Published: 20 March, 2020


Abstract:

Developing countries play a number one role in international green-economic development as key holders of green products, and services. Nonetheless, these countries are not sufficiently concerned within the debates on expansion policies, due to their crucial implication in worldwide feasible development. This research aims to analyze the relationship between CO2 outflows, energy utilization, and economic development in the Republic of Congo as well as the presence of a causative link between the factors by applying the Vector Autoregressive model, including as additional proxies’ variables gross-fixed-capital-formation, and rural population. The data cover the period 1985-2018 using cointegration and causality techniques as a methodological approach. The Granger causality test outcomes of cointegrated variables showed that there is one-way Granger causality running from real GDP to Energy utilization, and running from dioxide outflows to real income as well as two–way causative link between Energy utilization and CO2 outflows in Congo. The results also display a bidirectional causal link between the rural population and Energy utilization. Overall evidence confirms that the practice of energy conservancy approach may lead to a significant and negative effect on economic development.
Contribution/ Originality
This study contributes in the existing literature by using modern econometric time series approaches to examine the nexus between CO2 outflows, energy utilization and economic development. The findings showed that the governments should invest in renewable energy to cut-off CO2 emissions.

Keywords:

CO2 outflows, Energy utilization, Economic development, Analysis, Developing country.

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Funding:

This study received no specific financial support.

Competing Interests:

The authors declare that they have no competing interests.

Acknowledgement:

The authors would like to acknowledge the anonymous editors and colleagues for their valuable guidance, and helpful comments.

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