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Biomass energy consumption, economic growth and carbon emissions: Fresh evidence from West Africa using a simultaneous equation model

Adewuyi, Adeolu O., Awodumi, Olabanji B.
Energy 2017 v.119 pp. 453-471
bioenergy, biomass, carbon, demand functions, economic development, emissions, energy efficiency, equations, growth models, issues and policy, least squares, pollution, production functions, Burkina Faso, Gambia, Mali, Nigeria
This study investigated the relationship among biomass energy consumption, economic growth and carbon emissions in West Africa during 1980–2010. This nexus was explored by integrating the pollution production function and energy demand function with an augmented endogenous growth model. Moreover, this paper employed a simultaneous equation model estimated with three stage least squares (3SLS). Analysis was conducted for individual West African countries and panel of the countries.The overall results show that a complete significant interactive relationship (feedback effects) exists among GDP, biomass consumption and carbon emission in five West Africa countries (Nigeria, Burkina Faso, The Gambia, Mali and Togo). There are partial significant links among the variables in the remaining West African countries. A complete significant nexus among the variables was also discovered for panel of the countries. Based on the results, some policy implications were drawn for West African countries. There is need to reduce the prevailing high energy intensity of output in West Africa through the adoption of energy-efficient technologies. It is also imperative to find clean energy alternatives (or complementary) to biomass use so as to reduce the resulting high carbon emissions which may hinder the attainment of high and sustainable growth in the nearest future.