Relationship between methane emissions and economic growth in Central Africa countries: Evidence from panel data

Abstract

Methane (CH₄) is a greenhouse gas with a warming potential 28 times that of dioxide of carbon (CO₂) and Africa alone contributes more than 1/3 of global methane emissions. Considering the fact that Africa has the second largest hydro-forest basin in the world after the Amazon and is highly dependent on agriculture, this study examines the effects of economic growth on environmental quality in an Environmental Kuznets curve (EKC) framework. It empirically tests the relationship between CH₄ emissions and GDP per capita (GDPC) for six countries of Central African Economic and Monetary Community (CEMAC) over the period 1980 to 2018. Using the Driscoll-Kraay standard errors technique as well as panel Granger non-causality test, the results point out cointegration between CH₄ emissions and GDPC, show that there is bidirectional causality between the two variables and support evidence of EKC hypothesis. Policymakers should strengthen sustainable strategies for growth and environment.