Energy consumption, economic growth, and CO₂ emissions: Evidence from Cameroon

ABSTRACT

In this paper, we use time-series econometric modeling in view of examining the short- and long-run causal relationship among energy consumption, economic growth, and CO₂ emissions in Cameroon. The unit root test, the cointegration test, and Granger causality based on the error correction model (ECM) are tested on annual time-series data during the period 1971–2013. The results confirm the presence of a long-run equilibrium relationship between the variables and phenomenon of return to equilibrium. Granger causality based on ECM indicates the existence of three bidirectional relationships in the long run at the 5% level between the variables. There however exists only one unidirectional relationship at the 5% level of significance running from CO₂ emissions to energy consumption in the short run. Cameroon should implement policies to maintain the rise in energy consumption while developing energy-saving technologies and increase the renewable energy sources and to keep up economic growth to reduce its CO₂ emissions in the atmosphere for the success of its emergence in 2035.

KEYWORDS:

• Cameroon
• cointegration
• CO₂ emissions
• ECM
• economic growth
• energy consumption
• Granger causality