Issue 1 (March)

This is the first study to examine how Nigerian output is affected by the news-based Economic Policy Uncertainty Index by Tumala et al. (2023) and Climate Uncertainty Index by Salisu et al. (2023). Using ARDL and Granger causality on quarterly data from 2016Q2 to 2024Q1, the findings show that increased economic and climate uncertainties result in decreased output. Additionally, the study reveals that climate uncertainty has a more significant effect on output compared to economic policy uncertainty. The Granger causality indicates one-way causality from climate uncertainty to output, thereby reinforcing the substantial influence of climate uncertainty on output in Nigeria.

The determinants of production-based carbon emission (PCE) have been extensively examined in the literature. However, PCE only accounts for emissions generated within the territory of a country and does not capture emissions embedded in imported goods. The rapid growth in Consumption-based Carbon Emissions (CCE) in Sub-Saharan Africa (SSA), driven by increasing imports and economic activities, highlights the need for a comprehensive understanding of these emissions. This motivates us to examine the impact of Renewable Energy Consumption (REC) on CCE in SSA. We employed a two-step system Generalized Method of Moments (GMM) methodology, utilizing data from 1995 to 2020. The results show a negative effect of REC on CCE, suggesting that increases in renewable energy consumption tend to reduce CCE. In contrast, the positive impact of real GDP and population indicates that economic growth and population expansion tend to bolster carbon emissions. These findings underscore the importance of implementing policies harmonizing economic growth with sustainable energy strategies. They provide valuable insights for informed environmental and economic planning decisions.

This study seeks to investigate how climate change affects actual output in African countries, using greenhouse gas emission as a case study. This paper uses the actual output of Nigeria, Ghana, Liberia, The Gambia, Cabo Verde, and Sierra Leone for the analysis. Climate change is proxied by greenhouse gas emission, which are extracted from the International Monetary Fund (IMF) database, for the period, 1980 to 2022. Descriptive statistics, unit root, and panel System Generalized Method of Moments 1(SGMM1) are estimated, and the result shows that agricultural greenhouse gas emission reduces the output of the selected African Countries, while other greenhouse gases such as building and other sector’s greenhouse gas emission, energy industries greenhouse gas emissions, mineral industry greenhouse gas emission and road transport greenhouse gas emission increase output. For actual output to increase, the paper suggests policy remedies such as sustainable farming practices and adoption of climate-smart technologies.