Publication Details

Publication category
Economical

Carbon emissions, economic governance and economic growth

This study analyzes how carbon emissions, economic governance, and economic growth are connected in selected East African Community countries from 1996–2019. Using advanced panel methods like FMOLS, the results show that good economic governance, higher carbon emissions, more investment, and improved human capital all support economic growth. However, a growing labor force and more renewable energy consumption appear to reduce growth in the long run.

Publication Description

This study examines the relationship between carbon emissions, economic governance and economic growth based on evidence from selected East African Community countries (1996–2019). The study uses the panel fully modified ordinary least squares (FMOLS) due to its suitability in handling the endogeneity bias. We test for presence of panel unit root using Pesaran's CIPS (2007) which is robust in dealing with cross-sectional dependence. Further, we examine the long-run cointegrating relationship using Kao and Johansen Fisher panel techniques and Granger non-causality between the variables under study using Dumitrescu-Hurlin (2012) test. The study results show that economic governance, carbon emissions, gross capital formation and human capital index have positive effect on economic growth. Whereas, labour force and renewable energy consumption contribute negatively to economic growth