Carbon dioxide emission, electricity consumption, industrialization, and economic growth nexus: The Beninese case

ABSTRACT

In this study, the causal nexus between carbon dioxide emission, electricity consumption, industrialization, and economic growth was examined in Benin for the periods between 1980 and 2012 using the autoregressive distributed lag approach. Evidence from the study shows that a 1% increase in electricity consumption will increase carbon dioxide emissions by 0.56% in the short run, a 1% increase in Benin’s total electricity consumption will increase carbon dioxide emissions by 0.95% in the long run, while a 1% increase in industrialization will increase carbon dioxide emissions by 0.60% in the long run. In the quest to mitigate climate change, the study proposes an investment in clean and renewable energy sources to substitute the fossil fuels currently used for electricity production in Benin.

KEYWORDS:

• Africa
• Benin
• carbon dioxide emissions
• economic growth
• econometrics
• sustainability