LAPSE:2023.34924
Published Article
LAPSE:2023.34924
Investigating the Growth Effect of Carbon-Intensive Economic Activities on Economic Growth: Evidence from Angola
Yacouba Telly, Xuezhi Liu, Tadagbe Roger Sylvanus Gbenou
April 28, 2023
Despite its immense natural resources, Angola struggles to significantly improve its economy to reduce poverty. Carbon emissions have been increasing over the years, even though the country plans to reduce them by 35% by 2030. This paper attempts to assess the carbon emissions of several sectors (industries, transport, services, and residences) on economic growth, intending to find a balance between environmental protection that requires carbon emissions reduction and economic development that may add to environmental degradation. The study employed time series data on GDP, CO2, CH4, and N2O covering 1971 to 2021 and ARDL and ECM models. This is the first study at the state level in Angola on the relationship between economic development and environmental sustainability considering methane and nitrous oxide emissions. Additionally, the paper assesses the responses of GDP to deviation shock of GDP, CO2, CH4, and N2O by 2032. Phillip Perron and Augmented Dickey-Fuller tests showed that all the data are stationary at the first difference, favoring the application of the ARDL model to explore the short and long-run relationships. The result reveals that methane from agricultural activities and carbon emissions from the building sector and public services contribute to economic growth, whereas carbon emissions from industrial heat systems, non-renewable electricity production, and manufacturing industries harm economic growth. However, no relationship exists between nitrous oxide emissions and economic development. In addition, impulse response function estimates show that appropriate investments can sustain economic development over the years. Therefore, the country should diversify its economy and avoid polluting fuel sources, such as coal. Raising renewable energy’s proportion in the total energy mix can support growth while considering the environmental quality. Investments in skills training, academic projects in renewable energy technologies development, agriculture mechanization, and sustainable job creation are recommended. Additionally, investing in quality seeds adapted to climate realities might help lessen climate change’s adverse effects and promote growth. Manure manufacturing processes must be improved to reduce agriculture and livestock’s methane and nitrous oxide emissions. The country’s leaders are encouraged to promote raw material processing industries while insisting on reducing carbon emissions.
Keywords
Angola, ARDL, economic growth, greenhouses gas emissions
Subject
Suggested Citation
Telly Y, Liu X, Gbenou TRS. Investigating the Growth Effect of Carbon-Intensive Economic Activities on Economic Growth: Evidence from Angola. (2023). LAPSE:2023.34924
Author Affiliations
Telly Y: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China
Liu X: School of Economics and Management, Beijing University of Chemical Technology, Beijing 100029, China
Gbenou TRS: College of Mechanical and Electrical Engineering, Beijing University of Chemical Technology, Beijing 100029, China [ORCID]
Journal Name
Energies
Volume
16
Issue
8
First Page
3487
Year
2023
Publication Date
2023-04-17
Published Version
ISSN
1996-1073
Version Comments
Original Submission
Other Meta
PII: en16083487, Publication Type: Journal Article
Record Map
Published Article

LAPSE:2023.34924
This Record
External Link

doi:10.3390/en16083487
Publisher Version
Download
Files
[Download 1v1.pdf] (998 kB)
Apr 28, 2023
Main Article
License
CC BY 4.0
Meta
Record Statistics
Record Views
68
Version History
[v1] (Original Submission)
Apr 28, 2023
 
Verified by curator on
Apr 28, 2023
This Version Number
v1
Citations
Most Recent
This Version
URL Here
https://psecommunity.org/LAPSE:2023.34924
 
Original Submitter
Auto Uploader for LAPSE
Links to Related Works
Directly Related to This Work
Publisher Version