Advanced Research in Economics and Business Strategy Journal
Volume 6, Numéro 2, Pages 157-179
2025-12-31
Energy Consumption, Economic Growth, And Environmental Trade-offs In West Africa: Nexus Of Foreign Direct Investment
Authors : Udoinyang Dr. Nathan .
Abstract
Environmental degradation has become a major concern across West African region; this study examines the impact of energy consumption, economic growth (GDP), and foreign direct investment (FDI) on environmental degradation measured by CO2 emission in four West African countries: Nigeria, Ghana, Niger, and Mali from 1980 to 2023 with reference to Environment Kuznets Curve (EKC). Using secondary data from the World Development Indicators, the study employed various econometric techniques. First it evaluated the stationarity of the variables by means of unit root tests. Long-run connections were then established using panel cointegration tests. While three panel ARDL estimation approaches (PMG, MG, and FE) were used to estimate the models, descriptive statistics provided a summary of the data. Finally, a heterogeneous panel causality study was done to look at causal links between the factors. In the short run, energy consumption and GDP have a notable positive effect on greenhouse gas emissions, according to the results. Although in the long run energy consumption and FDI have a positive significant effect, whereas GDP squares representing the inverted U-shaped EKC exert a negative significant impact, thereby validating the EKC. Furthermore, based on these results, several environmental welfare improvements related policy suggestions are suggested, including promoting green investment, monitoring and regulating foreign direct investment, fostering sustainable economic growth, and encouraging economic diversification, while encouraging the exploration of alternative economic indicators for future work.
Keywords
Environmental degradation ; Foreign direct investment ; Economic growth ; Greenhouse gas emission ; Gross domestic production
Les articles similaires
Saadi Abdessamed
.
Moulay Boualam
.
pages 750-770.
Djadli Samir
.
pages 503-521.
Mebarki Abdelillah
.
Mokhtari Fayeçal,
.
pages 103-123.
Madani Houssam Eddine
.
Hadj Ahmed Mohamed
.
ص 321-336.
