Modeling the impact of green energy consumption and natural resources rents on economic growth in Africa: An analysis of dynamic panel ARDL and the feasible generalized least squares estimators

Figures & data

Table 1. Variables description, data sources, and expected signs

Variable	Description	Source	Expected Sign(s)
GDP	Gross Domestic Product	World Development Indicators 2021
REC	Renewable Energy Consumption (% of final energy consumed)	World Development Indicators 2021	±
CO2	Carbon dioxide emissions (metric tons per capita)	World Development Indicators 2021	+ /-
FEC	Fossil Fuel Energy Combustion (% of total energy consumed)	World Development Indicators 2021	±
FR	Forest Rents (% of GDP)	World Development Indicators 2021	+
MR	Mineral Rents (% of GDP)	World Development Indicators 2021	+
TNR	Total Natural Resource Rents (% of GDP)	World Development Indicators 2021	+
INFL	Inflation, Consumer Prices (annual %)	World Development Indicators 2021	±
Trade	Trade (% of GDP)	World Development Indicators 2021	+
GFCF	Gross Fixed Capital Formation (% of GDP)	World Development Indicators	+

Source: Researcher’s Construct

Figure 1. Econometric flowchart.

Source: Authors’ construct

Table 2. Pesaran’s test for cross-sectional dependence

Statistics	Model 1	Model 2
Pesaran’s test for cross-sectional independence	51.108	74.721
Prob.	0.0000	0.0000
The average absolute value of the off-diagonal elements	0.671	0.808

Source: Researcher’s Calculations through STATA 17

Table 3. Results of the Im-Pesaran-Shin and Levin-Lin-Chu tests for unit root

Im-Pesaran-Shin					Levin-Lin-Chu
Variables	I (0)		I (1)		I(0)		I(1)
	I.C.	I.C.& Tr	I.C.	I.C. & Tr	I.C.	I.C.& Tr		I.C.	I.C. & Tr
lnGDP	3.9332	0.6470	−12.3716***	−9.7375***	−1.2850*	0.7740		−10.9226***	−9.2694***
REC	1.9826	0.2874	−12.9753***	−10.6332***	−0.5944	−1.4274*		−10.8703***	−8.6415***
CO2	−0.2810	−1.7864**	−14.1361***	−12.0341***	−2.6055***	−3.3949***		−9.6649***	−7.3772***
FEC	1.2544	−2.0342**	−14.6806***	−12.2590***	0.3118	–1.5238*		−10.2407***	−7.6699***
FR	−2.5723***	−3.6038***	−15.9799***	−13.4081***	−2.5826***	−4.4542***		−14.1312***	−11.2605***
MR	-	-	-	-	−64.7133***	−51.8291***		−10.2601***	−4.2127***
TNR	−3.2791***	−2.1095**	−16.5728***	−13.6189***	−2.2721**	−1.0347		−11.7787***	−8.6622***
GFCF	−1.0840	−1.2612	−14.5642***	−12.0503***	−1.9307**	−1.4562*		−12.5214***	−10.3012***
INFL	−6.2105***	−5.8097***	−20.2085***	−18.3233***	−6.1345***	−5.8483***		−17.9277***	−15.0486***
TRADE	−1.0835	−0.9029	−15.1989***	−13.0373***	−1.5731*	−2.4209***		−12.6734***	−10.5770***

Source: Researcher’s Calculation through STATA 17

Note: *, ** and *** denote the absence of unit root at 10%, 5%, and 1% significance levels, respectively.

Table 4. Hausman test results

Choosing between models	PMG & MG	PMG & MG	MG & DFE
	Model 1	Model 2	Model 2
Test Summary	${\chi }^{2}statistic$	${\chi }^{2}statistic$	${\chi }^{2}statistic$
Cross-section random	−31.51 (1.000)	20.00 (0.0028)	0.04 (1.000)

Source: Researcher’s Calculation through STATA 17

Table 5. PMG and FGLS results of green energy and economic growth

	(1)	(2)
VARIABLES	PMG Estimates	FGLS Estimates
Short Run
ETC	−0.0402***
	(0.0139)
D.REC	−0.0386	−0.00629*
	(0.0348)	(0.00355)
D.CO2	0.280	0.151***
	(0.324)	(0.0501)
D.FEC	−0.0219	0.00593*
	(0.0161)	(0.00327)
D.GFCF	0.00114	0.000407
	(0.00298)	(0.00171)
D.INFL	−0.00443***	−1.39e-05**
	(0.00121)	(6.30e-06)
D.TRADE	−0.00471***	−0.00580***
	(0.00142)	(0.000866)
Constant	0.562***	23.98***
	(0.183)	(0.350)
Long Run
REC	0.121**
	(0.0580)
CO2	0.841***
	(0.300)
FEC	−0.0295
	(0.0390)
GFCF	0.101***
	(0.0188)
INFL	−0.000149
	(0.000108)
TRADE	0.0139**
	(0.00681)
Observations	720	744
Number of counties		24

Standard errors in parentheses

*** p < 0.01, ** p < 0.05, * p < 0.1

Source: Researcher’s Calculations through STATA 17

Table 6. PMG and FGLS results of natural resource rents and economic growth

	(1)	(2)
VARIABLES	MG Estimates	FGLS Estimates
Short-Run
ETC	−0.1041457***
	(0.0302)
D.FR	−1.161554**	−0.0579***
	(0.4957)	(0.00481)
D.MR	0.8675665	−0.0103**
	(1.9153)	(0.00495)
D.TNR	0.7603607*	0.00956***
	(0.4247)	(0.00191)
D.GFCF	0.0046576	0.00226
	(0.0038)	(0.00173)
D.INFL	−0.0032029**	−1.47e-05**
	(0.00128)	(6.08e-06)
D.TRADE	−0.0077763***	−0.00491***
	(0.00183)	(0.000875)
Constant	2.407389***	24.06***
	(0.7353)	(0.100)
Long-Run
FR	−1.832447
	(4.7523)
MR	4.990064
	(4.3512)
TNR	−2.382715
	(1.7449)
GFCF	0.1206891
	(0.1293)
INFL	−0.3966344
	(0.3969)
Trade	0.1241572
	(0.1236)
Observations	720	744
Number of countries		24

Standard errors in parentheses

*** p < 0.01, ** p < 0.05, * p < 0.1

Source: Researcher’s Calculations through STATA 17

Table 7. List of countries selected for this study

Algeria, Angola, Benin, Cameroon, Democratic Republic of Congo, Congo Republic, Cote d’Ivoire, Egypt, Gabon, Ghana, Kenya, Mauritius, Morocco, Mozambique, Namibia, Nigeria, Senegal, South Africa, Sudan, Tanzania, Togo, Tunisia, Zambia, and Zimbabwe.