Energy Consumption, Industrial Production and CO2 Emissions in Two Major African Countries

International Journal of Economics and Management Studies

© 2020 by SSRG - IJEMS Journal

Volume 7 Issue 2

Year of Publication : 2020

Authors : Victor Okechukwu Nwatu

10.14445/23939125/IJEMS-V7I2P126

How to Cite?

Victor Okechukwu Nwatu, "Energy Consumption, Industrial Production and CO2 Emissions in Two Major African Countries," SSRG International Journal of Economics and Management Studies, vol. 7,  no. 2, pp. 177-185, 2020. Crossref, https://doi.org/10.14445/23939125/IJEMS-V7I2P126

Abstract:

This paper estimates the relationship between energy consumption, carbon (iv) oxide emission, and industrial production for Nigeria and South Africa. The usual preliminary analysis and formal tests were performed on the data before the Autoregressive Distributed Lag (ARDL) were applied in the model estimation. The choice of the ARDL was due to the results obtained from the formal tests, especially the unit root tests. The model estimation for the data took into account the need to lag the data to be able to achieve stationary property. Both short-run and long-run estimates were generated. Diagnostic tests were also carried out on the estimated models. The results coefficients for energy consumption and carbon (iv) oxide emission were obtained for the short and long run for Nigeria and for only the short-run for South Africa. Conclusions and policy recommendations were then made to the government in line with the results of the model estimation. Top of the list is the regulation of energy consumption and carbon footprint via policies in the effort to increase industrial production.

Keywords:

CO2, Energy Consumption, GDP, Policy, ARDL.

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