Energy Strategy Reviews 44 (2022) 100977

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Energy Strategy Reviews

journal homepage: www.elsevier.com/locate/esr

Renewable energy, economic growth, and CO2 emissions contained

Co-movement in African oil-producing countries: A wavelet based analysis
Olivier Joseph Abban a, Yao Hongxing a, b, *, Alina Cristina Nuta c, Alex Boadi Dankyi d,
Charles Ofori e, Joana Cobbinah b
a
School of Mathematical Science, Institute of Applied Systems and Analysis (IASA), Jiangsu University, Zhenjiang 212013, China
b
School of Finance and Economics, Jiangsu University, Zhenjiang 212013, China
c
School of Economics & Business Administration, Danubius University, Galaı̄i, Romania
d
University of Cape Coast Directorate of Research, Innovation and Consultancy, Ghana
e
School of Finance, Zhejiang Gongshang University, Hangzhou, China

A R T I C L E I N F O A B S T R A C T

Keywords: Electricity power generation has gradually expanded in Africa, especially in oil-producing countries. Although
Renewable energy natural gas and coal produced most of the electricity, renewable energy sources (REW) played a significant role
Technological innovation in total electricity generation, with hydro being the most prevalent. This study examined the nexus between
Globalization
renewable energy, CO2 emissions, and economic growth in terms of time, space, and the combined time-
CO2 emissions
Wavelet coherence
frequency sphere using wavelet analysis. The following are the primary research questions: (a) Do the
Africa employed variables under examination have a long-term relationship? (b) What is the strength of the nexus
between renewable energy, economic growth, and CO2 emissions at different time and frequency frames? (c) Do
the independent variables have an anti-cyclic association with CO2 emissions? The empirical results confirmed
that: (a) there is evidence of a short-run association among the variables at different frequency scales. (b) The
wavelet coherence results provide evidence of a strong association among the variables in the long-run esti­
mation, which is supported by the Trace analysis and the Toda-Yamamoto causality. (c) The findings revealed
that REW and CO2 are out of phase and have an anti-cyclic impact, with REW driving the cycle. Accordingly,
appropriate policy measures are advocated to ensure that these African economies under study are on a path to
sustainability.

1. Introduction
Operational opacities and technological dependencies are cited as
structural features that complicate contemporary economies (Callegari
& Feder, 2021). Inherently, energy generation and production play an
important role in driving various modern businesses and economies [1].
Energy is a critical input in the industry and transportation sector [2,3].
posited that over-reliant businesses on technology might perish without
power. Vehemently, the creation of diverse sources of energy has
increased trading opportunities, which has aided economic growth [4].
Theoretically, four possible hypotheses (growth hypothesis, feedback
hypothesis, neutrality hypothesis, conservation hypothesis) explain the
relationship between energy usage and economic growth [5]. The
growth hypothesis states that increasing economic growth leads to
increased energy consumption. Equally, the conservation hypothesis
states that higher power consumption enhances economic growth and
contributes significantly to economic development [6]. Unlike the first
two hypotheses, the relationship between the two variables might be
bidirectional, implying that economic growth and energy usage are
related and constitute a feedback hypothesis. Finally, the relationship
between the two variables can be explained by the neutrality hypothesis,
which states that both variables are insufficient to influence each other
[7]. As a result, most experimental and theoretical studies on the
growth-energy hypothesis have focused on the crucial relationship be­
tween the variables [8,9].
Many industrial revolutions have relied heavily on non-renewables,
but recently, they have been deemed detrimental due to their adverse
environmental effects [10]. The surplusage energy dependency in the
modern-day economy has several negative consequences on the envi­
ronment and the future of humanity [11]. It has been accused of

* Corresponding author. School of Finance and Economies, Jiangsu University, Zhenjiang, 212013, China.
E-mail address: hxyao@ujs.edu.cn (Y. Hongxing).

https://doi.org/10.1016/j.esr.2022.100977
Received 1 July 2022; Received in revised form 16 September 2022; Accepted 9 October 2022
Available online 19 October 2022
2211-467X/© 2022 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY license (http://creativecommons.org/licenses/by/4.0/).
O.J. Abban et al. Energy Strategy Reviews 44 (2022) 100977

impeding sustainable development by polluting the environment and time-frequency causal association between CO2 emissions, renewable
harming humanity’s health. The convergence of energy, economic energy, and technological innovation. In contrast to traditional time-
growth, and the environment is intricate and has sparked several aca­ constant investigations, the current study’s element of time-varying
demic arguments [12–14]. As a result, the literature has gone into great investigation adds new value to the energy-environment literature.
detail about the nexus between environmental debasement, energy This study uses the novel wavelet analysis to analyze the nexus between
usage, and economic growth. For example [15], looked into the role of renewable energy, technological innovation, and CO2 emissions in Af­
economic growth and electricity usage in impacting the natural envi­ rican oil-producing countries over time and frequency intervals. The
ronment. They discovered that CO2 emissions had a significant negative results of such advanced econometrics would enable companies, orga­
impact on the environment. Likewise [16], stated that the impact of CO2 nizations, and governments in Africa to better environmental policies to
and economic growth on environmental degradation is negative. ensure long-turn sustainability. More accurately, this study includes and
The dependence of economic activities and, by extension, develop­ tests the following hypotheses:
ment on energy, in the spirit of environmental sustainability, places
Hypothesis 1. Renewable energy can positively or negatively affect
renewable energy at the apex of sustainable and ecological development
CO2 emissions.
[17,18]. Renewable energy is defined as power obtained from natural
sources such as water, wind, solar, and other natural sources with Hypothesis 2. Technological innovation can have a bidirectional
minimal environmental negative impact. Renewable energy’s accept­ relationship with CO2 emissions.
ability worldwide has grown due to its excellent features in performing
Hypothesis 3. Economic growth has a bidirectional influence on CO2
an environmentally friendly energy role. Among the many advantages of
emissions.
renewable energy, one of the most notable is its ability to reduce the use
The remainder of this article is organized as follows: Section 2 deals
of fossil fuels in economic operations [19]. It contributes to meeting the
with the review of the related literature. The data and methodology
industry’s energy needs and simultaneously achieving sustainable
adopted to conduct the study are detailed in Section 3. The empirical
development goals. The importance of renewable energy sources has
results and their discussion are presented in Section 4. The conclusions
gotten much attention for their non-disruptive effects on the environ­
close the paper in Section 5.
ment and human health [20]. However, few studies have examined the
non-linear relationship between CO2 emissions and renewable energy.
2. Literature review
Studies such as [16,21–23,61] have emphasized the prevalence of
asymmetric relationships among economic growth variables; nonethe­
2.1. Energy usage-economic growth-CO2 emissions nexus
less, there is a paucity of literature that examines these critical charac­
teristics of times series in analyzing environmental performance and
The literature on the nexus between CO2 emissions-energy is
energy association.
extensive [25–30]. However, no consensus has arrived on the causality
All fossil fuels, including natural gas, coal, and crude oil, are found in
relationship between energy usage. Some exhibited unidirectional
Africa. The world’s proven coal, natural gas, and crude oil are all found
causation [18,31], some showed a bidirectional link [27,32], and still,
in the continent, making up around 1.32%, 7.1%, and 7.2%, respectively
others depicted no causation association at all [28]. By demonstrating
(BP, 2019). These resources are a significant source of income, espe­
the association between economic growth and renewable energy, some
cially for economies that produce oil, such as South Sudan, Sudan,
research contrasts a unidirectional association, whereas others claimed
Nigeria, Libya, Gabon, Equatorial Guinea, Egypt, Congo, Angola, and
no causal association. Surprisingly, investigations on the relationship
Algeria. These countries are the top 10 producers, with a combined daily
between the two factors that were conducted in various economies
production of 6, 468,000 barrels (OPEC, 2019). As a result, the afore­
produced diverse conclusions.
mentioned oil-producing economies are likely to be the most polluting
Determining the direction of the causality, that is, whether one
economies in Africa. For instance, Nigeria, the first oil-producing and
variable results from the other as well as whether they are merely
exporting economy in Africa, witnessed an average growth rate of 7%
dependent on one another is also necessary to understand the causation
per annum from 2000 to 2014, resulting in total CO2 emissions of
association between renewable energy and economic growth. This
94,294.7 kilotons, the third among the most polluting economies behind
causality has been established using several techniques and variables,
Algeria (CDIAC, 2017). Algeria, the continent’s third-largest oil pro­
and naturally, each one produced a different finding, which can be
ducer, has a vast potential for producing renewable energy due to its
attributable to the variety of techniques used. Simply put, a one-way
significant desert. However, it is essential to note that just 5% of all
reliance between two variables is referred to as unidirectional causa­
Algerian’s total energy consumption in 2015 was derived from renew­
tion. When two variables have a bidirectional causation association,
able sources, resulting in a 3.7% increase in the country’s GDP (WB,
they are said to be substantially dependent on each other [19]. found a
2019). Algeria is not the only instance; others include Nigeria, South
one-way directional association between renewable energy and eco­
Africa, Egypt, Equatorial Guinea, and Libya. For the continent as a
nomic growth holds in the short term, while a bidirectional causation
whole, renewable energy accounts for 2% of primary energy [24]. Given
effect between economic growth and renewable energy maintains in the
that the selected economies are the most polluting in Africa, particularly
long run. It follows that whereas economic growth and renewable en­
in terms of CO2 emissions, it is crucial to understand how those CO2
ergy are mutually dependent over the long term, they are mutually
emissions affect the countries’ economic development. Wouldn’t it
dependent over the short term.
make sense to raise their renewable energy output if they wanted to
There has been a significant advancement in the literature to capture
safeguard the environment from global warming and, more importantly,
emissions from energy sources as people are becoming more aware of
enhance macroeconomic outcomes? In other words, how do economic
the effects of researching energy sources in terms of emissions [33].
growth and renewable energy affect CO2 emissions in these African
According to recent energy research [34,35], CO2 emissions are the
countries that produce oil?
primary contributor to global warming; as a result, much attention is
Evidently, the economies of oil-producing countries are growing at a
being directed towards their reduction. Since CO2 emissions stay in the
fast pace. This might be fueled by fossils that have a comparative
atmosphere for 50–100 years, it is, however, almost impossible to stop
advantage. However, as these nations economically achieve financial
global warming but the use of renewable energy would help lower CO2
stability by relying mostly on non-renewable energies, implicational is
emissions. This is possible when renewable energy power plants take the
the marginal cost in the form of a trade-off where environmental secu­
place of electric power plants powered by fossil fuels.
rity gets compromised. Thus, this study contributes to literature by
As stated by Ref. [31]; environmental deterioration is another effect
addressing a gap in the literature by capturing the uniqueness of the

2
O.J. Abban et al.
of CO2 emissions. This has been the reason why some researchers have
chosen to examine the environmental Kuznets curve hypotheses, which
postulate that as per capita income rises, environmental degradation
will become more equal after a certain threshold [36]. These hypotheses
contend that in the early stages of economic growth, degradation would
heighten over time. The largest source of CO2 emissions, however, has
not been the energy sector, rather, it is the industrial sector, as shown by
the negative and positive effects of CO2 emissions on renewable energy
[37,38]. Thus, the government must expand the percentage of renew­
able power in each economy’s portfolio because it produces energy
without releasing CO2 into the atmosphere. By employing the
Augmented mean group AMG and the CCEMG estimators [39], claim
that the EKC hypothesis holds for the West African countries, an inter­
governmental organization with 16 member countries. [40]; also
employed the decoupling index as well as the ARDL and they posited
that the EKC hypothesis holds for the BRICS countries. It is feasible to
demonstrate several causal correlations between renewable energy and
economic growth due to the variations in governmental policies and
climatic conditions.
2.2. Wavelet coherence analysis in energy studies
A number of research have examined the nexus between CO2 emis­
sions, energy usage, and economic growth using the wavelet coherence
analysis. The result of such studies are as follows [41]; explored the
causal association between nuclear energy usage and economic growth
in the UK using the wavelet analysis and the Toda Yamamoto causality
tests from 1998 to 2017. The results of wavelet coherence show that
variations in economic growth affect the UK’s nuclear energy usage at
distinct frequencies, particularly over the long term and in various pe­
riods from 1998 to 2017. Additionally, there is a short-term, positive
association between nuclear energy usage and economic growth be­
tween 2002 and 2006. The results of the Toda Yamamoto causality test
are used in this work to confirm the wavelet coherence findings, and we
also evaluate their consistency.
[42] uncovered the dynamic nexus between economic growth, CO2
emissions, and renewable energy in Portugal using the Morlet wavelet
analysis from 1980 to 2019. These analysis findings showed that the
interconnectedness between the indicators advances with time and
frequency. In the frequency domain, the current research discovers
considerable wavelet coherence as well as strong lead and lag linkages,
however, in the time domain, it discovers contradictory interactions
between the variables. According to an economic point of view, the
wavelet analysis confirms that the use of renewable energy reduces CO2
emissions, whereas trade openness, technical advancement, and eco­
nomic expansion increase CO2 emissions. The findings indicated that
Portugal’s utilization of renewable energy would reduce CO2 over the
long term [20]. examined the effects of renewable energy and nonre­
newable on CO2 emissions in Argentina between 1965 and 2019. In the
frequency domain, the current study reveals noteworthy wavelet
coherence and important lead and lag relationships, but in the time
domain, contradicting correlations are suggested among the relevant
variables. From an economic standpoint, the results of the wavelet
analysis confirm that using renewable energy in the medium and long
term helps to sustain the environment. Furthermore, trade openness
reduces CO2 over the medium term, but there was no discernible rela­
tionship over the long term. Additionally, both economic expansion and
nonrenewable energy sources have both short- and long-term negative
effects on the environment. The frequency-domain causality results also
show that nonrenewable energy, trade openness, and economic growth
may all be used to predict CO2 emissions over the long run.
In addition to the ones mentioned above, several studies have
examined the nexus between economic growth and energy usage by
employing the wavelet coherence hypotheses. However, none of these
studies has made an effort to determine the causality of the association
between technological innovation, renewable energy, and CO2
3
Energy Strategy Reviews 44 (2022) 100977
emissions in the case of oil-producing African countries. Thus, the
objective of this study is not only to analyze the connection between CO2
emissions, technological innovation, and renewable energy in these
African countries but also to do so by utilizing the wavelet approach,
while simultaneously presenting new data and advancing the ongoing
discussion.
3. Data and methodology
3.1. Data
A dataset comprising 9 countries from Africa (Angola, Equatorial
Guinea, Algeria, Gabon, Egypt, Libya, Congo Republic, Sudan, and
Nigeria) covering 2000 to 2019 serves as the foundation for this wavelet
analysis. Due to data availability, South Sudan was not included in the
study to complete the top 10 oil producers in Africa. All data were taken
from the World Bank database, KOF globalization database, and the US
Energy Information Administration. CO2 emissions are measured in
metric tons per capita and are made by the combustion of the production
of cement and fossil fuels. CO2 emissions are generated when gas, liquid,
and solid fuels are consumed, as well as when gas is flared. Renewable
electricity (REW) is the proportion of all electricity produced by all types
that are produced from renewable energy sources. Technological inno­
vation (TEC) is calculated as both non-resident and resident patent ap­
plications. GDP per capita, which is represented in US dollars per capita,
is used to gauge economic growth. It represents the aggregate gross
value of all resident producers in an economy, less any subsidies that are
not factored into the product value. Globalization (GLO) as stated by the
KOF globalization index, is measured by the social, economic, and po­
litical attributes of globalization. The total of products and services
exported and imported, expressed as a percentage of GDP, is what is
referred to as trade openness (TOP).
3.2. The wavelet approach
The wavelet coherence analysis, formulated by Ref. [43]; is used in
this study to evaluate the frequency-time dependency of energy usage
along the belt and road initiative. The wavelet coherence analysis’s
principal novelty is that it integrates frequency-domain and
time-domain causation. As a result, this can beguile both the long- and
short-term causation relationships between CO2, REW, GDP, TEC, GLO,
and TOP in oil-producing countries in Africa. Put succinctly, this
multi-scale disintegration overture produces a natural framework for
demonstrating frequency-dependent behavior to investigate the rela­
tionship between CO2 and the five other variables (REW, GDP, TEC,
GLO, and TOP).
The wavelet (ψ ) has a mean of zero and is an integral square function
with real values, i.e.,
∫∞
ψ (t) = 0 (2)
− ∞
Like a wave, the function waggles along the x-axis. The specific
wavelet employed in this study is from the Morlet wavelet family of
[43]; and can be described as;
1
ψ (t) = π − 4 e− iω0 t − 12t2
e (3)
Where, p(t) = t = 1, 2, 3, …T is the performance of a wavelet on a finite
time series, ω is the angular frequency, and π is one-half of a revolution.
According to the Heisenberg uncertainty principle, there are some
possibilities of some ambiguity between the scale and time localization.
With a Morlet wavelet of central frequency (ω0 = 6), it balances the
temporal and scale localizations adequately.
3.2.1. The continuous wavelet transforms
This wavelet consists of two main parameters; frequency (f) and
O.J. Abban et al. Energy Strategy Reviews 44 (2022) 100977

location (k), the location (k) parameter specifies the exact time (loca­ operator. In the graphical presentation of the wavelet coherence display,
tion) by a wavering of the wavelet. Specific frequencies can be locally the horizontal axis indicates the time dimensions, while the frequency is
localized in the distended wavelet by adjusting the frequency (f). In indicated by the vertical axis. Furthermore, lesser frequency indicates a
addition, the wavelet gets less (more) condensed with scale, indicating a higher scale and vice versa. When two series co-vary in frequency-time
lower (higher) frequency. Through scaling and translation of ψ is space, the wavelet coherence would be employed to locate them. In
retraced starting from the parent wavelet ψ , ψ k,f . addition, the color red indicates a strong association between series,
( ) whereas the color blue indicates a weaker relationship. The cold areas
1 t− k outside of the relevant zone discuss the frequency and time with no
ψ k,f (t) = √̅̅̅ ψ , k, f ∈ R, f ∕
=0 (4)
h f correlation between the series. The lead and lag phase relationship be­
The continuous wavelet could be formulated from ψ (•) contingent as tween the examined variables is rendered with arrows in the scenario of
a function of frequency (f), Wp (k, f) and location (k) via comparison to the wavelet display. The phase zero difference indicates that two vari­
the wavelet family p. ables move in lockstep at a specific scale. Furthermore, when the arrows
∫∞ ( ) point left (right), the time series are in anti-phase (phase). When the two
Wp (k, f ) =
1
p(t) √̅̅̅ ψ
t− k
dt (5) series are in phase, it indicates that the series is traveling in the same
− ∞ f f direction, however, when they are in anti-phase, it indicates the reverse
The equation below provides the previously generated time series direction. Arrows pointing downward reveal that the first series leads
p(t), and it associated coefficient ψ ; the second series by 2π , whereas arrows pointing upwards bespeaks that
∫ [∫ ∞ ] the second series leads the first series by 2π . However, the combination of
1 ∞ ⃒ ⃒
⃒Wp (a, b)⃒2 da db these two is more common. There are few statistical tests available for
p(t) = (6)
Cψ 0 − ∞ b2 determining the phase difference as stated by Ref. [45] because
When used, the wavelet power spectrum (WPS) or absolute squared describing the null value is particularly difficult. However, [60] con­
value can provide a wealth of information on the amplitude, or the tended that no significance test for the phase difference should be per­
biggest divergence from equilibrium, of each time series, given as; formed. Instead, just focus on the phase variations that are statistically
⃒ ⃒2 significant for the coherences. Thus:
WPSp (k, f ) = ⃒Wp (k, f )⃒ (7)
• If ∅p,q = 0, the two variables have positive co-movement (in phase)
3.2.2. The wavelet coherence and no lag/lead relationship is present. Thus, the arrow will be
The wavelet coherence analysis has underlying advantages over the pointing to the right ( ).
( )
conventional correlation. In the combined frequency-time-based cau­ • If ∅p,q ∈ 0, 2π , the two variables have a positive co-movement (in-
sations, the coherence technique allows for a more comprehensive phase). Thus, {Xt } leads {Yt } and the arrows will be pointing up­
theatrical of time domains of the time series p(t) and q(t). Thus, the wards and right ( )
( )
cross-wavelet transform (CWT) for the time series p(t) and q(t) takes the • If ∅p,q ∈ 2π , π , the two variables have negative co-movement (out-
form; phase). Thus, {Yt } leads {Xt } and the arrows will be pointing up and
Wpq (k, f ) = Wp (k, f )Wq (k, f ) (8) left ( ).
( )
• If ∅p,q ∈ − 2π ,0 , the two variables have a positive co-movement (in-
Where, Wp (k, f) refers to CWT p(t) and Wq (k, f) refers to the CWT of q(t) phase). Thus, {Yt } leads {Xt } and the arrows will be pointing down
[44]. The covariance of p(t) and q(t) at a specific scale is given as CWT, and right ( ).
( )
as such CWT read as a covariance for a specific time and frequency. As • If ∅p,q ∈ − π, 2π , , the two variables have a negative co-movement
stated by Ref. [44]; the square of the wavelet coherence can be ascer­ (out-phase). Thus, {Xt } leads {Yt } and the arrow will be pointing
tained as
down and left ( ).
⃒ −1 ⃒
⃒C(f Wpq (k, f )⃒2
R2 (k, f ) = ( ) ( ) (9) The empirical procedure presented in this study encompasses several
C f − 1 Wp (k, f )2 C f − 1 Wq (k, f )2
strategies presented in Fig. 1.

Where, C captures the smoothing process and period over time, ranging
from 0 ≤ R2 (k, f) ≤ 1. It is worth noting that as R2 (k, f) approaches 1, it
indicates the possibility of correlation among the time series at a
particular scale, which is confined by a black line and constituted by a
red color. But as R2 (k, f) is near to 0, it shows a scenario of no association
among the time series which is symbolized by the blue color.
3.2.3. The phase
When calculating R2 (k, f), it is impossible to tell the difference be­
tween a positive and a negative. The concept put forward by Ref. [44] is
therefore advantageous since it makes it easier to detect changes in the
wavelet coherence by looking for signs of deferrals in the variations of
the two-time series p(t) and q(t). The chi-squared distribution, they said,
accurately estimates the wavelet power spectrum (WPS) of AR (0) or AR
(1). They offered methods for determining the significance level of
wavelet coherence.
( { −1 })
I C(f Wpq (k, f )
∅pq (k, f ) = tan− 1 { } (10)
R (f − 1 Wpq (k, f )
Where R indicates the actual part operator, I refers to the imaginary
4. Empirical results and discussion
4.1. Exploratory data analysis
4.1.1. Descriptive statistics
Table 1 provides descriptive statistics of the employed variables. The
kurtosis and Skewness were used to specify the normalcy assumptions.
With a kurtosis and skewness of 3 and 0, a variable is said to be normally
distributed [9]. As observed in Table 1, none of the variables met the
criterion for normalcy, hence none of the variables were distributed
normally. Inferring from Fig. 2, it could be inferred that there is no
evidence of a strong association between the employed variables since
the coefficient of correlation is less than 0.7.
4.1.2. Unit root test results
Prior to the empirical evaluation, the study used both the first- and
second-generation unit root test to examine the stationarity of the
employed variables. Table 2 provides the stationarity test results from
the first-generation tests (ADF, PP, and KPSS). The Schwartz Informa­
tion Criterion (SIC) was used to ascertain the lag length in the ADF test,

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O.J. Abban et al. Energy Strategy Reviews 44 (2022) 100977

Fig. 1. Model estimation procedure.

Table 1
Descriptive Statistics of all variables.
Variables Mean Median SD Min Max Skewness Kurtosis JB

CO2 95518.23 14814.0 17540.36 1700.000 109366.80 3.782828 17.52090 2971.394a

REW 9.73E+09 5.43E+08 2.94E+10 0.000000 2.84E+11 6.186139 48.22414 24364.45a
GDP 9282.75 1882.746 1546.405 838.9875 13679.05 1.860524 5.426503 218.7198a
GLO 58.7329 62.75916 11.05079 37.77840 84.46861 0.059452 2.380847 14.40503a
TOP 87.115 88.40382 55.6413 23.56332 568.5247 2.057484 6.972658 362.5910a
TEC 197.556 64.4254 42.6922 132.8721 215.876 0.854380 5.404562 11.0843a
a, b, c
Note: indicates 1%, 5%, and 10% statistical significance levels, respectively.

with a minimum lag length of 8. The KPSS test was employed because
the ADF is observed to be biased towards I (1).
As a result, inferring to Table 3 the underlying variables were unit
roots at levels, but they all became stationary at the first difference. It
could also be inferred from Table 3 (second generation test results) that
the variables were I (0) at level but followed to be I (1) after the first
difference.
4.1.3. Structural breaks test
The study further used the [46] panel unit root test to examine the
stationarity of the employed variables taking structural breaks into ac­
count. The study assumed that the breaks are unknown and can be
determined from the data. Table 4 unveils the results of the panel unit
root test from Ref. [46]’s test. Considering the null hypothesis of the test
that all panel time series have unit roots, the results demonstrate that all
variables became stationary at the first difference even when there is a
structural break.
4.1.4. Cointegration test results
Given that the employed variables were I (1) after the first difference,
the Trace test formulated by Ref. [47] was employed prior to the wavelet
analysis. Table 5 provides the results from the bivariate study of CO2 and
the five other variables (REW, TEC, GDP, GLO, and TOP) in Africa,
indicating that each bivariate was cointegrated, and thus the alternative
hypothesis of cointegration was accepted. In addition, the study
employed the causation test by Ref. [48] to explore the nexus between
the employed variables. The traditional causality by Ref. [49]; calculates
a vector autoregressive (VAR) model (k), with the k being the optimal
lag length. Nevertheless, the granger causality is constrained by the
stationary assumption and is sensitive to the lag length in the VAR
model. As a result, the [48]; which yields more accurate parameter es­
timates even for non-cointegrated VAR systems were employed to
improve the causality reliability [48]. test yielded an increased VAR (k +
dmax ), where dmax is the variable maximal cointegration order.
Based on a p-value of less than 0.01, the optimal lag length was found
to be between 2 and 7 using the VAR residual serial correlation LM tests

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O.J. Abban et al. Energy Strategy Reviews 44 (2022) 100977

Fig. 2. Correlation plot of the employed variables.

Table 2
First-generation unit root test of the employed variables.
Series Levels First Difference
ADF t- Critical KPSS Critical PP Adj Critical ADF t- Critical KPSS Critical PP Adjt- Critical
stat. value at 5% LM stat value at 5% t-stat value at 5% stat. value at 5% LM stat value at 5% stat value at 5%
LnCO2 − − 2.77 1.21 0.38 − 1.43 − 2.77 − 9.71b − 2.77 0.06b 0.38 − − 2.77
1.13 12.77b
LnREW − − 2.91 1.32 0.38 − 1.51 − 2.91 − − 2.91 0.06b 0.38 − − 2.91
1.07 10.31b 11.73b
b
LnGDP − − 2.42 1.24 0.38 − 1.88 − 2.42 − − 2.42 0.06 0.38 9.71b − 2.42
1.12 11.01b
LnGLO − − 2.77 1.05 0.62 − 1.72 − 2.77 − 9.76b − 2.77 0.06 b
0.62 − 8.93 b
− 2.77
1.42
LnTOP − − 3.21 1.43 0.62 − 1.72 − 3.21 − 8.77b − 3.21 0.06b 0.62 17.44b − 3.21
1.51
LnTEC − − 2.66 1.27 0.47 − 1.44 − 2.66 − − 2.66 0.06b 0.47 − 7.99b − 2.66
1.01 13.63b
a, b, c
Note: indicates 1%, 5%, and 10% statistical significance levels, respectively.

Table 3
Second-generation unit root test of the employed variables.
Variables CIPS CADF
Levels First difference Levels First difference
Constant Constant&Trend Inf. Constant Constant &Trend Inf. Constant Constant &Trend Inf. Constant Constant &Trend Inf.

a a a a
LnCO2 − 1.301 − 2.144 I (0) − 5.334 − 5.233 I (1) − 1.583 − 2.347 I (0) − 2.895 − 3.084 I (1)
LnREW − 2.012 − 2.164 I (0) − 4.819a − 4.994a I (1) − 1.436 − 2.105 I (0) − 3.710a − 4.812a I (1)
LnGDP − 1.811 − 2.058 I (0) − 4.608a − 4.856a I (1) − 1.741 − 1.693 I (0) − 3.274a − 3.373a I (1)
LnGLO − 1.301 − 2.132 I (0) − 4.486a − 5.049a I (1) − 1.881 − 2.083 I (0) − 4.131a − 4.055a I (1)
LnTOP 1.511 − 2.126 I (0) − 3.618a − 3.383a I (1) − 1.332 − 1.781 I (0) − 3.425a − 3.967a I (1)
LnTEC − 1.212 − 2.177 I (0) − 4.861a − 4.589a I (1) − 1.313 − 2.181 I (0) − 3.692a − 3.195a I (1)
a, b, c
Note: indicates 1%, 5%, and 10% statistical significance levels, respectively.

verse the null hypothesis of no serial correlation. The non-auto corre­ violate the parameter stability, normality, and assumptions of no serial
lated error process of the VAR model with the lag length satisfied the correlation, and. Satisfied with the diagnostics tests, the study then
stability criteria. The diagnostic test results confirmed that the VAR performed the [48] causality test, which employs the modified Wald
equations passed the robustness checks, indicating that they did not statistics (MWALD) to investigate the null hypothesis of no causality. It

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O.J. Abban et al. Energy Strategy Reviews 44 (2022) 100977

Table 4
Structural breaks panel unit root test results.
Variables Intercept/linear trend At Level At difference

Break period Min Z-statistics Prob. Break Period Min Z-statistics Prob.

Intercept 2013–8 − 5.004 0.314 2014–8 − 14.817b 0.012

LnCO2
Linear trend 2011–8 − 4.487 0.425 2013–8 − 21.406a 0.000

Intercept 2016–2 − 3.606 0.597 2016–2 − 15.222b 0.038

LnREW –
a
Linear trend 2016–2 − 5.278 0.199 2016–2 − 20.412 0.000

a
Intercept 2017–5 − 5.470 0.630 2017–5 − 23.901 0.000
LnGDP
Linear trend 2016–5 − 5.259 0.277 2016–5 − 17.376b 0.041

Intercept 2014–7 − 5.494 0.443 2015–7 − 25.511b 0.027

LnGLO
a
Linear trend 2013–7 − 4.345 0.362 2014–7 − 18.573 0.000

Intercept 2012–1 − 5.760 0.996 2018–1 − 29.043a 0.000

LnTOP
Linear trend 2013–1 − 4.339 0.535 2018–1 − 17.188c 0.073

b
Intercept 2015–3 − 5.062 0.439 2010–2 − 27.902 0.017
LnTEC
b
Linear trend 2013–3 − 5.341 0.715 2012–2 − 15.787 0.000

Note: Where 1, 2, 3, 4, 5, 6, 7, 8, and 9 in the above table show the structural breaks in countries, i.e., Angola, Equatorial Guinea, Algeria, Gabon, Egypt, Libya, Congo
Republic, Sudan, and Nigeria. a, b, and c indicate that variables are significant at 1%, 5%, and 10% levels.

Table 5 Table 6
[47] Trace cointegration test results. Toda and Yamamoto cointegration test results.
Variables Hypothesized No. of Trace Critical value Prob. Null Hypothesis Lag MWALD Probability Inference
CE(s) Statistic at 5% Statistics

LnCO2 & None 10.43 17.26 0.001a LnCO2 does not Granger 4 0.73 0.351 Accepts
LnREW cause LnREW H0
At most 1 4.71 3.77 0.034b LnREW does not Granger 4 0.81 0.531 Accepts
LnCO2 & None 11.94 9.86 0.027b cause LnCO2 H0
LnTEC LnCO2 does not Granger 2 0.46 0.183 Accepts
At most 1 4.08 3.67 0.019b cause LnTEC H0
LnCO2 & None 16.33 13.32 0.014b LnTEC does not Granger 2 0.81 0.177 Accepts
LnGDP cause LnCO2 H0
At most 1 5.11 4.27 0.001a LnCO2 does not Granger 4 12.59a 0.000 Rejects H0
LnCO2 & None 9.12 11.28 0.003a cause LnGDP
b
LnGLO LnGDP does not Granger 4 7.72 0.014 Rejects H0
At most 1 4.22 3.55 0.017a cause LnCO2
LnCO2 & None 10.51 11.61 0.057c LnCO2 does not Granger 7 0.54 0.004 Accepts
LnTOP cause LnGLO H0
At most 1 3.87 4.17 0.046b LnGLO does not Granger 7 17.03a 0.417 Rejects H0
a, b, c cause LnCO2
Note: indicates 1%, 5% and 10% statistical significance levels, LnCO2 does not Granger 7 9.68 a
0.018 Rejects H0
respectively. cause LnTOP
a
LnTOP does not Granger 7 15.23 0.002 Rejects H0
cause LnCO2
is worth stating that the MWALD test statistics were distributed ac­
cording to the chi-square with k degree of freedom. Given the signifi­ Note: a, b, c
indicates 1%, 5% and 10% statistical significance levels,
cance of the MWALD statistics in Table 6, the study could accept the H0 respectively.
from LnREW to LnCO2 emissions and likewise from CO2 to REW. This
finding must be reckoned to be significant for policymakers, as the respect to CO2 emissions in the long run and vice versa. Lastly, In the
acceptance of the null hypothesis of the Granger non-causality demon­ case of CO2 and TOP, it was observed that in both directions the null
strates the non-spillover of renewable energy changes with respect to hypothesis was rejected, depicting that these variables have a long-run
CO2 emissions in the long run. Again, the null Granger non-causality was association. This association reveals that the spillover of trade open­
accepted from CO2 to TEC, and its reverse relationship (TEC to CO2) was ness changes with respect to CO2 emissions in the long run and vice
also accepted. This relationship attests that the non-spillover of tech­ versa. Lastly, the [50] co-integration test was employed to evaluate the
nological innovation changes with respect to CO2 emissions in the long long-run relationship among the variables. Based on the test statistics
run. The null Granger non-causality was also accepted from CO2 to GLO, Gτ , Gα , Pτ Pα , the alternate hypothesis of the existence of cointegration
indicating that CO2 does not affect globalization. However, the null was accepted at various significance levels as seen in Table 7.
hypothesis from GLO to CO2 was rejected, which indicates that the
spillover from GLO changes to LnCO2 in the long run. The null of the 4.2. Wavelet analysis results
Granger non-causality from CO2 to GDP and from GDP to LnCO2 was
rejected, revealing the spillover of economic growth changes with Prior to the examination of the co-movement of the employed vari

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O.J. Abban et al. Energy Strategy Reviews 44 (2022) 100977

Table 7
Long-run relationship test results.
Gτ Gα Pτ Pα

Deterministic chosen: constant

value p-robust Value p-robust value p-robust value p-robust

Panel − 3.676c 0.070 − 4.390b 0.011 − 8.924b 0.010 − 6.188b 0.070

Deterministic chosen: constant and trend
Panel − 2.862a 0.000 − 3.917b 0.024 − 5.227a 0.000 − 4.508b 0.020

ables, the initial time series and the reconstruction time series were
generated and displayed in Fig. 3. With an average power that was
determined to be substantial, a wavelet reconstruction replicated the
original time series for the periods. The study followed by the exami­
nation of the co-movement underlying all the six-time series by using the
wavelet power spectrum in the time-frequency domain. A scale of 64
(26 ) was adopted as a result of the length of the data points (time series).
The grey curve in the figures below corresponds to the cone of influence,
which refers to the edge where the wavelet power is terminated and
hence is difficult to infer. Regarding the black thick contours, it indicates
the wavelet power spectrum. This power spectrum is significant at a 5%
level of significance. Thus, with the Monte Carlo simulations, significant
test results were obtained. The power spectrum’s colors range from
weak (blue) to strong (red).
4.2.1. Wavelet power spectrum results in Africa
The wavelet power spectrum’s aftereffects provide the fluctuation
effects of the factors employed in three areas: color bar, frequency, and
time. The aftereffects of CO2 emissions and globalization is depicted in
Fig. 4 in a coherent frequency-time relationship. The findings suggest
that in the short term, the fluctuations of CO2 emissions were significant
(high) at frequency period 4–8 (low frequency) from 2007 to 2014. From
2011 to 2017, CO2 emissions have a strong fluctuation both in the me­
dium and long run from frequency scale 32 to 64. The fluctuations of
GLO in the short were significant (strong) at frequency period 0–16 (low
to medium frequency) from 2003 to 2008. In the long run, a strong
fluctuation (red color) of GLO was observed and it prolonged from fre­
quency 32–48 from 2006 to 2010. The spectrum also indicated that GLO
was is slightly weak in the medium term (frequency 6–8) due to yellow
shading from 20,011 to 2017. The wavelet power spectrum for renew­
able and economic growth is shown in Fig. 5. REW was observed to
obtain high prolonged sensitivity and vulnerability in the short term in
2005 from periods 0–16. Again, a prolonged substantial vulnerability
was observed in 2015 on a frequency scale of 0–12. Economic growth

Fig. 3. Original and reconstructed time series of the employed variables.

8
O.J. Abban et al.
Fig. 3. (continued).
displayed a high power in periods 0 to 20 between 2017 and 2019, while
a low vulnerability was observed on a scale 0–9 in 2003 and 2007. The
power spectrum for technological innovation and trade openness is
depicted in Fig. 6, the heatmap showed that TEC had a high power which
prolonged from low to high-frequency scale (0–48) between 2007 and
2009. The spectrum for TOP revealed a high power at frequencies 8 to
18 between 2014 and 2016.
4.2.2. Wavelet coherence results in Africa
The wavelet coherence of the paired variables is depicted in Fig. 7.
Within the combined frequency-time sphere, the wavelet coherence
evaluates how CO2 emissions move in tandem with the five variables
(REW, TEC, GDP, GLO, and TOP) in oil-producing economies in African
oil-producing countries. The time period is represented by the x-axis,
while the frequency is represented by the y-axis, which has three scales:
low, medium, and high. These scales correspond to short-run, medium-
run, and long-run. The significance of the correlation among the vari­
ables is determined by the color scale. It is worth stating that the brighter
(red) the color, the higher the absolute value of the correlation with
regard to R2 (k, f) in Eq (8). The 5% significance level is shown by the
thick black contours, and the arrows indicate the direction of the cor­
relation among the variable pairs. Thus, it would be possible to figure
out whether a variable is leading or lagging. The right-pointing arrows
denote a positive correlation between a paired variable, and a negative
correlation is indicated by the left-pointing arrow.
The wavelet coherence between CO2 and REW in oil-producing Af­
rican economies is shown in Fig. 7a. It could be observed that REW had
shown to be substantially linked with CO2 in the short run. It could be
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Energy Strategy Reviews 44 (2022) 100977
observed that from mid-2000 to 2003, the arrows were pointing to the
left revealing that the variables (REW & CO2) have an anti-cyclic impact,
with REW driving the cycle (REW has a negative causal effect with CO2
emissions). The arrows pointing to the left corroborate that the REW and
CO2 are out of phase, with REW leading CO2 by 2π (leading by one-quarter
of the respective scale). From 2008 to 2015, it was evidenced again that
the arrows were pointing to the left side, indicating that REW and CO2
are out of phase and have an anti-cyclic impact, indicating that REW has
a negative effect on CO2. In the medium run, specifically at frequency 8
to 16 from 2014 to 2017, the arrows pointing to the left indicate that
REW and CO2 have an anti-cyclic impact with REW driving the cycle and
thus, the two variables are out of phase, with REW has a negative effect
on CO2. In the long run at frequency 32 to 64, the arrows were observed
to be pointing left and in mixed directions. This depicts that the two
variables are again out of phase. Therefore, based on the findings,
enhancing REW is associated with lessening CO2 emissions in Africa,
which does not contradict the sustainability goal. However, the cyclic
effect observed between REW and CO2 emissions could be due to a
number of confounding factors (warm climate, population growth, and
GDP growth). Thus, governments in Africa should take impregnable
steps to increase the consumption of REW. Thus, governments in these
countries should take impregnable steps to increase the consumption of
REW. The results of the association between these variables are in line
with the study done by Ref. [51]; where they observed a negative
co-movement between CO2 and REE in Portugal. However, the positive
relationship contradicts the work done by Ref. [52] in the USA.
The wavelet coherence between CO2 and TEC in oil-producing Af­
rican countries is shown in Fig. 7b. The heatmap indicates that TEC had
O.J. Abban et al.
Fig. 4. Wavelet Power Spectrum for CO2 emissions and Globalization.
shown to be substantially linked with CO2 both in the medium and short
run specifically from 2000 to 2009, at a frequency scale of 0–32.
Nevertheless, the direction of the arrows to the right revealed that the
CO2 and TEC in the phase, with CO2 leading TEC by 2π . Considering the
medium run, specifically at frequency 4 to 12 from 2011 to 2017, the
arrows pointing to the left indicate that TEC and CO2 have an anti-cyclic
impact with TEC driving the cycle and thus, the two variables are out of
phase, with TEC has a negative effect on CO2. It was also observed that
the arrows are pointing to the left and downward indicating that CO2
and TEC are out of phase and have an anti-cyclic impact at frequency 16.
Generally, it was deduced that the arrows are pointing leftwards,
depicting that the two variables are out of phase. Thus, the findings
indicate that increasing TEC tends to decrease CO2 emissions in Africa’s
sustainability goal. The study done by Ref. [53] observed the same
pattern in their global study in exploring the spillover effect among
technological innovation, climate change, and uncertainty. The study
done by Ref. [42]; also observed the same relationship patterns between
CO2 emissions and technological innovation during their work in
Portugal.
Considering Fig. 7c, a strong link between CO2 and GLO over
different time frames was observed. In 2003, 2004, 2017, 2018, and
2019, the study discovered a significant association between CO2 and
GLO in the short run mostly at frequency scales of 0–4. The pointing
arrows to right suggest a positive co-movement between the variables
with no lag relationship. Nonetheless, in the medium run (8–12), it was
observed that the arrows are pointing to the right, suggesting that CO2
has a cyclical influence. However, in the long run-on scale 16 to 48 from
2013 to 2019, the arrows were pointing rightward and downward,
arguing that a positive co-movement exists between CO2 and GLO with
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Energy Strategy Reviews 44 (2022) 100977
CO2 leading GLO. However, the strength of the association was observed
to change from red (strong association) to yellow (weak association)
shading gradually from 2004 to 2011 in the long term. Generally, the
pattern of GLO suggests that both in the short and medium run, the
relationship between CO2 and GLO is positive where CO2 is leading.
Thus, the findings indicate that GLO significantly heightens CO2 emis­
sions in the selected countries. This scenario can be explicated by greater
trade as a result of globalization improving total economic productivity.
A result of foreign direct investment and sophisticated technology
transfer between developing and developed economies has stimulated
economic growth. Furthermore, the trend of globalization had opened
up investment opportunities through international foreign direct in­
vestment and financial deregulation, as well as boosting capital markets.
Without a doubt, this pattern boosts economic expansion, trade, and
capital markets, which leads to increased energy demand and, thus in­
creases CO2 emissions. The results obtained are in line with the study
done by Ref. [54] in G7 countries, where they postulated the same
pattern of conclusion. Likewise, the study done by Ref. [55] posited the
same pattern for globalization and CO2 in Indonesia.
Fig. 7d indicates the wavelet coherence between CO2 and GDP in the
selected African counties. CO2 showed a substantive association with
GDP in the short-run (0–4) in 2000 and 2019. The direction of the ar­
rows pointing to the right affirms that the GDP and CO2 in the phase,
with CO2 leading GDP by 2π . Taking into account the medium run (fre­
quency scale 6–16) from 2000 to 2017, it was observed that the arrows
were pointing rightward revealing that CO2 and GDP have a cyclic
impact, with CO2 emissions driving the cycle (CO2 emissions have a
positive causal effect on GDP). Lastly, a strong association was obtained
in the long run (period 16–48) from 2013 to 2019, with all the arrows
O.J. Abban et al.
Fig. 5. Wavelet Power Spectrum for Renewable energy and Economic growth.
pointing leftward, signaling that the GDP and CO2 are out of phase, with
GDP leading CO2 by 2π . The possible explanation observed between CO2-
GDP in Africa could be explained by the heavily reliant on oil, which is
subject to price fluctuations. Oil prices have soared in recent years,
resulting in a surge in revenue in the oil business and, as a result, a rise in
GDP, drastically altering household consumption patterns in Africa.
However, as economic growth is gradually on the rise, measures are
been placed by these economies to reduce environmental degradation.
The results obtained are in line with the study done by Ref. [56]; where
they obtained the same pattern of results in Malaysia. Likewise, the
study by Ref. [57] revealed the same association between CO2 emissions
and GDP in the United States.
The wavelet coherence between CO2-TOP in the selected countries
can be depicted in Fig. 7e. The heatmap showed that the paired variable
(CO2-TOP), had a substantive association in the small scale (short-run)
from 0 to 8 across the time range (2000–2019). Indeed, looking at these
periods, the arrows pointing rightward depict that the inherent variables
were present in the phase, substantiating the fact that CO2 leads TOP by
2. Notwithstanding, in the medium run (8–16) from the same contour, a
π Sudan in 2015.
similar observation was made for this time frame. Undoubtedly, in the
long run (at periods 32–48), a strong correlation between CO2 and TOP
was observed. However, the association between these variables was
also observed outside the 5% significance level of the grey cone-shaped
curve from 2000 to 2005 and 2017 to 2019 in the long run and thus
insignificant. Thus, it could be claimed that the link between TOP and
CO2 out of the region is weak and cannot account for the long-term run.
The results obtained are in line with the study done by Ref. [58] in the
EU, where they stated that CO2 and TOP are significantly associated
both in the long and short run. The summary of the lead and lad
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Energy Strategy Reviews 44 (2022) 100977
relationship among the paired variables is presented in Table 8.
4.2.3. Robustness test
The study employed the ICSS1 test propounded by Ref. [59] as a
robust test. Table 9 indicates the time periods of shift in variance as
identified by the ICSS algorithm. With regard to CO2 emissions, four
change points were identified by the algorithm, with the first regime in
2011 (Libya) and the last regime being 2017 (Egypt). In the case of
renewable energy, the algorithm identified a shift in variance with Libya
at the first break in 2011 and Nigeria at the last break in 2016.
Considering economic growth as a variable, seven changes in invariance
were identified. In regards to globalization, the algorithm identified
three changes in variance with a break in Angola in 2013, Gabon in
2014, and Congo republic in 2016. On the other hand, the trade variable
obtained four breaks point, with Libya at the first break in 2011, Sudan
at the second break in 2012, Angola at the third break in 2015, and
finally Egypt in 2017. Lastly, two changes in variance were obtained for
technological innovation, recorded for Equatorial Guinea in 2014 and
Based on the findings obtained, most of the breaks that occurred in
these countries are a result of political and economic instability, and oil
price shocks. A world shock such as the September 11 attack in the US
(World Trade Center) could have explained the breaks as it coincided
with the time period of the study. The structural break observed in CO2
emissions could be attributed to the increase in the year-by-year CO2
concentrations. The steady growth of deforestation activities juxtaposed
with the burning of fossil fuels might have accounted for this. The
structural breaks observed in trade could be attributed to world demand
for such oil. In the past decade, the energy crisis has heightened the
O.J. Abban et al.
Fig. 6. Wavelet Power Spectrum for Technological Innovation and trade openness.
uncertainty in the oil prices, which may have caused the variance
structural breaks to occur in the variable. In the case of renewable en­
ergy, consumption, the volatility observed could be attributed to its
price. The costs of renewable energy are falling and have low volatility,
making them an attractive option regardless of short-term oil price
movements. The changes influence the trading reaction of producers
and buyers (as speculators or arbitragers), which may push the com­
modity prices either downwards or upwards. Actually, these political
and economic events correlate with the sudden changes in variance
identified by the ICSS algorithm.
5. Conclusion and policy implications
Employing a dataset of 9 top oil-producing countries in Africa, the
study employed the wavelet coherence analysis to investigate the co-
movement between renewable energy, economic growth, and CO2
emissions from 2000 to 2019. As a result of the aforementioned findings
and discussions, some major outcomes from the study are as follows: the
variables were stationary at the first difference considering the presence
of variance change (structural breaks). The results from the Johansen
and the Toda and Yamamoto long-run association confirmed the exis­
tence of cointegration among the variables. The wavelet coherence
analysis finally revealed that renewable energy had a negative associa­
tion with CO2 emissions (anti-cyclic effect), while globalization had a
positive association with CO2 emissions (cyclic impact). The study again
revealed that economic growth obtained a positive association with CO2
emissions, likewise the association between trade openness and CO2
emissions were observed to be positive. In conclusion, renewable energy
and technological innovation both improve the quality of the
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Energy Strategy Reviews 44 (2022) 100977
environment. Consequently, based on the findings obtained, some policy
implications derived were as follows;
i. This is quite insightful and useful for these selected countries and
Africa as a whole since vigilance should be exercised on the
consumption of multiple energy sources. As a result, the shift
toward renewable energy sources such as hydro, nuclear, and
biomass, among others, not only improves economic growth by
also ensures a sustainable ecosystem. Furthermore, the selected
economies must create development-focalized proficiencies and
litigates to build the economy through environmentally respon­
sible means. Existing development goals, for example, might be
designed and implemented as an additional drive to expand
renewable energies, which can then promote and energize mon­
etary development.
ii. The findings of this study necessitate these African economies to
enhance their long-term commitment to renewable energy usage
as it is which is critical in this time of global consciousness. This is
to help achieve the SDG’s goals for energy, which will result in
cleaner energy and a more environmentally friendly atmosphere.
iii. Though electricity conservation policies could reduce emissions,
they should be supported by a comprehensive transition from
non-renewable energy to renewable energy sources. Building a
low-carbon power sector, which is an integral part of any coun­
try’s long-term energy reform, obviously takes time, money, and
technology. As a result, in the medium term, a hybrid electricity
supply could be achieved, with renewable energy playing a
considerable role.
O.J. Abban et al. Energy Strategy Reviews 44 (2022) 100977

Fig. 7. The wavelet coherence pairs of (CO2-REE), (CO2-TEC), (CO2-GLO), (CO2-GDP), and (CO2-TRO).

have a significant role to play in the initiative’s efforts to reduce

Table 8
the effect of energy consumption on CO2 emissions. Because of
Summary of the causation among the variables.
this, it is essential to gradually reduce the consumption of coal
Variables Frequency Significance of the correlation Strength of the and refined oil has given the rise in energy demand in these
Correlation
countries. As a result, the different governments should keep
LnCO2 & Low LnCO2 ↔ LnREW (YES) Strong increasing the proportion of the new energy sources, such as
LnREW electricity, natural gas, and solar energy, in the structure of en­
Medium LnCO2 ↔ LnREW (YES) Strong
High LnCO2 ↔ LnREW (YES) Strong
ergy consumption.
LnCO2 & LnTEC Low LnCO2 ↔ LnTEC (Yes) Strong v. These African countries have been among the fastest expanding
Medium LnCO2 ↔ LnTEC (Yes) Strong economies in recent years but their rapid industrialization has
High LnCO2 ↔ LnTEC (Yes) Weak been accompanied by an increase in their energy usage (fossil
LnCO2 & LnGLO Low Strong
fuels), which has a considerable negative environmental effect.
LnCO2 ↔ LnGLO (Yes)
Medium LnCO2 ↔ LnGLO (Yes) Strong
High LnCO2 ↔ LnGLO (Yes) Weak Thus, policymakers should devise strategies to limit volatility. Oil
LnCO2 & LnGDP Low LnCO2 ↔ LnGDP (Yes) Strong importing states should boost their oil stockpiles to safeguard
Medium LnCO2 ↔ LnGDP (Yes) Strong against supply disruptions. Governments in Africa should also
High LnCO2 ↔ LnGDP (Yes) Strong think about oil-saving measures like promoting energy conser­
LnCO2 & LnTRO Low LnCO2 ↔ LnTRO (Yes) Strong
Medium LnCO2 ↔ LnTRO(Yes) Weak
vation regulations, improving energy efficiency, and using
High LnCO2 ↔ LnTRO (Yes) Strong alternative fuels like geothermal energy production, hydroelec­
tricity, wind, solar, ocean energy, and Biomass (Renewable
energy).
iv. Governments in the selected countries should create the neces­ vi. Policies for international integrations must be in line with the
sary policies to optimize energy use and work as swiftly as they degree and mode of globalization. Globalization needs to be in
can to liberate themselves from the shackles of conventional line with environmental sustainability standards because it de­
energy usage. Traditional energy sources (refined oil and coal) grades environmental quality. To support environmentally

13
O.J. Abban et al. Energy Strategy Reviews 44 (2022) 100977

Table 9 Data availability

ICSS Algorithm results (Structural break in variance).
Variables Break points Time Period Standard deviation Data will be made available on request.
2011(6) 0.0304
CO2 4 2013(2) Acknowledgments
2015(7)
2017(5)
No.
2011(6) 0.0157
REW 3 2013(3)
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