The Nexus between Economic Growth, Energy Consumption, Agricultural Output, and CO2 in Africa: Evidence from Frequency Domain Estimates

Abstract

This study examined the nexus between economic growth, energy consumption, and the environment with the moderating role of agricultural value addition and forest in Africa based on data sourced from 1980 to 2019. We employed both the time domain and frequency domain panel Granger causality estimation techniques to compare results across the different horizons. Extant literature suggests the inability of time domain estimation techniques to account for causality at different frequencies. The study also accounts for the nexus among our variables both at the single-country and multi-country levels. The results at the single-country level are at best mixed. The results of the panel Granger causality at the frequencies domain suggest that a bi-directional relationship exists between energy consumption and economic growth, and that energy consumption Granger causes carbon emissions in Africa. The results align with the feedback hypothesis on the one hand but contradict the conservation hypothesis on the other hand. The study has some policy implications.