Abstract
This scientific enquiry examines the role of capital investment in the energy-pollution model in SANEM countries. The methodology is based on the Pooled Mean Group (PMG), which is appropriate for a heterogeneous panel. Findings reveal that energy use negatively impacts CO2 emissions in Algeria, South Africa, Morocco, and the panel, in the short-run; however, it positively impacts CO2 pollution in Nigeria, Egypt, and the panel, in the long-run. Again, investment exerts a positive effect on CO2 in South Africa and Algeria, whereas it is negative in Nigeria, Egypt, and Morocco. Capital investment also expands short-run pollution in the panel, but it reduces long-run pollution. Lastly, the energy-investment interaction reduces the panel’s CO2 pollution in the short-run and long-run, as well as, in Morocco, Egypt, Nigeria, and South Africa, except in Algeria. Thus, we conclude that capital investment is crucial in the energy-pollution nexus and suggest cooperation in attracting low-carbon emitting investments to the region.
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Notes
United Nations Framework Convention on Climate Change. The 2018 edition was held in Katowice, Southern Poland, between 2nd and 14th of November 2018 while the last edition was held in Bonn, Western Germany, between 17th and 27th of June 2019.
South Africa, Algeria, Nigeria, and Egypt- According to Oshikoya (2015), SANE is termed as Africa’s G4 nations with about one-third of the continent’s population, one-fifth of its landmass and over half of its total GDP.
These are polluted goods which comprise carbon emissions, particulate emissions and other green-house-gases
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EPM conceptualised the study, wrote the stylised facts and methodology, and analysed the results.
KBJ presented the literature review.
XVV significantly contributed in writing and editing the manuscript.
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Mesagan, E.P., Ajide, K.B. & Vo, X.V. Dynamic heterogeneous analysis of pollution reduction in SANEM countries: lessons from the energy-investment interaction. Environ Sci Pollut Res 28, 5417–5429 (2021). https://doi.org/10.1007/s11356-020-10865-2
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DOI: https://doi.org/10.1007/s11356-020-10865-2