A multivariate causality analysis of CO(2) emission, electricity consumption, and economic growth: Evidence from Western and Central Africa()

The vector error correction model is used to examine the short- and long-run impacts of electricity consumption and economic growth on CO(2) emissions in Western and Central Africa from 1970 to 2020. This paper adopted time series vector error correction model (VECM) approach to conduct stationarity test, cointegration test, stability test, and Granger causality test. Cointegration tests are used to examine the long-run impact of electricity consumption and economic growth on CO(2) emissions. It was revealed that CO(2) emission, electricity consumption and economic growth are co-integrated. Electricity consumption and economic growth have a significant and positive effect on CO(2) emission. The study also revealed that the adjustment process is not driven by electricity consumption, and anytime there is a deviation from the long-run equilibrium, economic growth and CO(2) emission adjust to restore the long-run equilibrium. From the short-run Granger causality, electricity consumption and economic growth do not Granger cause CO(2) emissions. However, past values of CO(2) emissions have an effect on the present value of economic growth. Generally, long-run dynamics of electricity consumption and economic growth were established to have a greater impact on CO(2) emission than the short-run dynamics. Hence, it is important to promote green economic concepts in the area.