Modeling the dynamic Nexus among coal consumption, pollutant emissions and real income: empirical evidence from South Africa

Environ Sci Pollut Res Int. 2020 Mar;27(8):8772-8782. doi: 10.1007/s11356-019-07345-7. Epub 2020 Jan 7.

Abstract

This study explores the interaction among coal consumption, pollutant emissions, and real income for South Africa in a multivariate setting. To achieve this objective, annual frequency data spanning from 1965 to 2017 is used for analysis. A series of econometrics tests were conducted ranging from stationarity and non-stationarity tests for unit root properties of the variables under consideration. Empirical evidence finds support for the inverted U-shaped pattern between energy consumption and environmental degradation in South Africa. The Toda-Yamamoto Granger causality test shows a feedback causality between economic growth and carbon dioxide emissions, as well as between GDP and coal consumption. All these highlighted findings have inherent environmental implications. Based on these outcomes, policy directions such as diversification of the South Africa energy mix to renewables and cleaner energy sources and also the adoption of carbon capturing and storage techniques were suggested to engender a cleaner and friendlier environment.

Keywords: Coal consumption; Economic growth; Environmental Kuznets Curve; South Africa.

MeSH terms

  • Carbon Dioxide
  • Coal / economics*
  • Coal / statistics & numerical data
  • Economic Development*
  • Environmental Monitoring*
  • Environmental Pollutants*
  • Models, Statistical*
  • South Africa

Substances

  • Coal
  • Environmental Pollutants
  • Carbon Dioxide