Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalization

Climate change has become a global phenomenon; hence, mitigating environmental pollution and degradation are crucial for addressing climate change consequences. A paradigm shift from fossil fuel to clean energy sources is suggested to reduce environmental pollution without compromising economic grow...

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Main Authors: Abdimalik Ali Warsame, Hudayfe Osman Daror, Abdulkadir Mohamed Abdullahi
Format: Article
Language:English
Published: IOP Publishing 2025-01-01
Series:Environmental Research Communications
Subjects:
Online Access:https://doi.org/10.1088/2515-7620/adaac7
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author Abdimalik Ali Warsame
Hudayfe Osman Daror
Abdulkadir Mohamed Abdullahi
author_facet Abdimalik Ali Warsame
Hudayfe Osman Daror
Abdulkadir Mohamed Abdullahi
author_sort Abdimalik Ali Warsame
collection DOAJ
description Climate change has become a global phenomenon; hence, mitigating environmental pollution and degradation are crucial for addressing climate change consequences. A paradigm shift from fossil fuel to clean energy sources is suggested to reduce environmental pollution without compromising economic growth. This study assesses the validity of the environmental Kuznets curve (EKC) hypothesis by incorporating the impacts of renewable energy, population density, and globalization on ecological footprint in IGAD member nations. A battery of econometric techniques, such as Pedroni, Kao, and Johansen Fisher cointegration methods, heterogeneous panel methods, and Dumitrescu-Hurlin panel causality tests are utilized. Before the formal analysis, we performed a cross-sectional dependence test; and it was observed that the data are cross-sectional dependent. Hence, the second-generation unit root test is utilized which confirms that all the interested variables are stationary at the first difference I (1). The empirical results of cointegration methods indicate that explanatory variables are cointegrated into the ecological footprint in the long run. Moreover, the PMG—which provides consistent results as evidenced by the Hausman test—underscored that globalization, population density, and renewable energy mitigate ecological footprint in the long run even though renewable energy is insignificant. An increase in economic growth is associated with a deterioration of environmental pollution, while squared growth is linked to a reduction in pollution. This evidence supports the existence of the EKC theory, which posits an inverted U-shaped relationship between economic expansion and ecological footprint. Besides, unidirectional causalities are detected from ecological footprint to population density, renewable energy, economic growth, and squared economic growth but not the other way around. In light of the empirical results, several policy recommendations are proposed.
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spelling doaj-art-a8f1167d3e69456bbf7e8f3ebb2119402025-01-28T10:28:51ZengIOP PublishingEnvironmental Research Communications2515-76202025-01-017101503110.1088/2515-7620/adaac7Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalizationAbdimalik Ali Warsame0https://orcid.org/0000-0001-6130-5607Hudayfe Osman Daror1https://orcid.org/0009-0001-7417-3436Abdulkadir Mohamed Abdullahi2Faculty of Economics, SIMAD University , Mogadishu, SomaliaFaculty of Economics, SIMAD University , Mogadishu, SomaliaFaculty of Economics, SIMAD University , Mogadishu, SomaliaClimate change has become a global phenomenon; hence, mitigating environmental pollution and degradation are crucial for addressing climate change consequences. A paradigm shift from fossil fuel to clean energy sources is suggested to reduce environmental pollution without compromising economic growth. This study assesses the validity of the environmental Kuznets curve (EKC) hypothesis by incorporating the impacts of renewable energy, population density, and globalization on ecological footprint in IGAD member nations. A battery of econometric techniques, such as Pedroni, Kao, and Johansen Fisher cointegration methods, heterogeneous panel methods, and Dumitrescu-Hurlin panel causality tests are utilized. Before the formal analysis, we performed a cross-sectional dependence test; and it was observed that the data are cross-sectional dependent. Hence, the second-generation unit root test is utilized which confirms that all the interested variables are stationary at the first difference I (1). The empirical results of cointegration methods indicate that explanatory variables are cointegrated into the ecological footprint in the long run. Moreover, the PMG—which provides consistent results as evidenced by the Hausman test—underscored that globalization, population density, and renewable energy mitigate ecological footprint in the long run even though renewable energy is insignificant. An increase in economic growth is associated with a deterioration of environmental pollution, while squared growth is linked to a reduction in pollution. This evidence supports the existence of the EKC theory, which posits an inverted U-shaped relationship between economic expansion and ecological footprint. Besides, unidirectional causalities are detected from ecological footprint to population density, renewable energy, economic growth, and squared economic growth but not the other way around. In light of the empirical results, several policy recommendations are proposed.https://doi.org/10.1088/2515-7620/adaac7IGAD countriesEKCrenewable energyeconomic growthglobalization
spellingShingle Abdimalik Ali Warsame
Hudayfe Osman Daror
Abdulkadir Mohamed Abdullahi
Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalization
Environmental Research Communications
IGAD countries
EKC
renewable energy
economic growth
globalization
title Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalization
title_full Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalization
title_fullStr Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalization
title_full_unstemmed Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalization
title_short Unraveling the environmental Kuznets curve in IGAD countries: interplay between ecological footprint, economic growth, renewable energy, and globalization
title_sort unraveling the environmental kuznets curve in igad countries interplay between ecological footprint economic growth renewable energy and globalization
topic IGAD countries
EKC
renewable energy
economic growth
globalization
url https://doi.org/10.1088/2515-7620/adaac7
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