The Relationship Between Net Trade and Carbon Dioxide Emissions in Africa

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Abdulrasaki Saka

Abstract

We study the net impacts of international trade on carbon dioxide
(CO2) emissions in African countries at different income groupings and other
driving forces of environmental impacts (CO2 emissions) using an augmented
STIRPATN model. The continent experienced a large growth in carbon dioxide
emissions of about 701.88% between 1960 and 2010, and this provoked our
interest in the study. We identify the key driving forces to be net trade, population
density, final consumption expenditure (annual growth), manufacturing sector
and services sector. We also found that the services sector consistently show lowcarbon
emission impacts particularly in low middle income countries in Africa
(LIMCA) and upper income countries in Africa (UICA). Indicating that a shift
from highly depended manufacturing economies that suggest increasing-carbon
economies in both LIMC and UICA to services economies is vital in order to strive
for a low-carbon economies in the continent. The coefficient for net trade stands
out explicitly significant and positive for all the income groupings. The findings
show that the average effect of net trade over CO2, when the net trade changes
across time and between countries increases by 1%, CO2 emissions increases by
about 1.68%, 2.45% and 1.01% for LICA, LMICA and UICA respectively, when
all other predictors are constant.

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Keywords

International trade
CO2 emissions
environmental impacts
population density

Section
Articles

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