Climate change and agricultural development in West Africa: Role of renewable energy and trade openness

  • Received January 1, 2021;
    Accepted February 6, 2021;
    Published February 8, 2021
  • Author(s)
  • DOI
    http://dx.doi.org/10.21511/ee.12(1).2021.02
  • Article Info
    Volume 12 2021, Issue #1, pp. 14-31
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This work is licensed under a Creative Commons Attribution 4.0 International License

The design, implementation, and evaluation of energy policies in combating climate change are becoming increasingly evident to strengthen economic growth driven by the agricultural sector in most developing countries. The study analyzes the direct and indirect effects of renewable energy consumption (REC) on agriculture value-added (AgVA), CO2 emissions, and trade openness in the short- and long-run in the West African countries. The second-generation panel unit root tests, the panel cointegration methods, and Panel Vector Error Correction Model are used with World Bank data from 1990 to 2015. A panel Granger causality test was also used to determine the direction of causality between variables. Findings show a unidirectional relationship between AgVA, CO2 emissions, and REC; between REC, gross fixe capital formation (GFCF) and trade openness. Moreover, the bidirectional hypothesis is verified between agricultural development and trade openness. However, the null hypothesis is found between AgVA and GFCF, on the one hand, and GFCF and CO2 emissions, on the other hand. These results suggest that fostering renewable energy policy and revisiting trade policy toward reducing environmental pollution will enable agricultural development and boost the regional economy.

Acknowledgment
The author wants to thank Dr. Moukpè GNINIGUE for his technical supports and Prof. Jean Marcelin Bosson BROU from the University of Houphouet Boigny (Cote d’Ivoire), Dr. Odzadifo K. WONYRA and Dr. Hodabalo BATAKA from the University of Kara, Dr. Koffi Massesso ADJI from the West African Sciences Services Centre on Climate Change and Land Use (University of Cheikh Anta Diop, Dakar) and Essotanam MAMBA from the University of Lomé for their constructive comments on the earlier version of this manuscripts. Finally, the author is grateful to the anonymous reviewers and Editor-in-Chief of Environmental Economics, whose comments have improved this paper. However, the opinions expressed in this paper are solely those of the author.

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    • Figure 1. Test of stability of long-run relationship among variables
    • Figure 2a. CO2 policy response on agricultural development by 2030 (SDG agenda)
    • Figure 2b. REC policy response on agricultural development by 2030 (SDG agenda)
    • Figure 2c. Regional integration policy response on agricultural development by 2030 (SDG agenda) in West Africa
    • Figure 3a. CO2 emissions policy response on agricultural development by 2063 (African Union agenda)
    • Figure 3b. REC policy response on agricultural development by 2063 (African Union agenda)
    • Figure 3c. Trade openness policy response on agricultural development by 2063 (African Union agenda)
    • Figure 4a. Trade openness policy response on CO2 emissions by 2030 (SDG agenda)
    • Figure 4b. Trade openness policy response on CO2 emissions by 2063 (African Union agenda)
    • Figure A1. Policy responses in light of sustainable development agenda (Agenda 2030)
    • Figure A2. Policy response in light of African Union agenda (Agenda 2063)
    • Table 1. Average annual of the variables used in the study (1990–2015)
    • Table 2. Correlation between variables and multicollinearity test
    • Table 3. Breusch-Pagan test of independence
    • Table 4. Pesaran panel unit root test with cross-sectional
    • Table 5. Westerlund ECM panel cointegration tests
    • Table 6. Granger causality test
    • Table 7. Panel Vector Error Correction Model (PVCM) estimating long-run causality
    • Conceptualization
      Essossinam Ali
    • Data curation
      Essossinam Ali
    • Formal Analysis
      Essossinam Ali
    • Funding acquisition
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    • Investigation
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    • Methodology
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    • Project administration
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    • Resources
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    • Software
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    • Supervision
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    • Validation
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    • Visualization
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    • Writing – original draft
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    • Writing – review & editing
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