The Long-Run Effects Of Trade Openness On Carbon Emissions In Sub-Saharan Africa

The recent energy and environmental studies are largely keen on building economies through focusing more on environmental sustainability and reducing carbon emissions.Based on this assertion,this study uses the EKC paradigm to investigate the long-term impact of trade openness on carbon emissions in the presence of economic growth and energy use.This study employed panel data 1990-2018 in other to achieve robust analysis and enhancement of decision-making.Relying on the availibity of data,a sample of 17 Sub-saharan Afrian（SSA）economies were analysed by sub-grouping them into Middle-income and Low-income panels.The purpose of these categories was to observe whether factors unique to the countries within the mentioned sub-panels influence the connection between trade openness and carbon emissions in the presence of energy consumption and economic growth.Prior to estimating the long-run effect of trade openness on emission of carbon,preliminary econometric tests which includes the cross-section dependency,homogeneity,unit root together with cointegration tests were conducted.The Fully Modified Ordinary Least Square（FMOLS）is employed together with the Pooled Mean Group（PMG）estimator to estimate the long-run effect of trade openness to emission of carbon,considering varibles having the same order integration and as well cointegrated,Finally,the study explored a long-run causality relationship amid CO₂ emissions,energy usage,trade openness,economic development was conducted via the granger causality test in panl vector error correction model（PVECM）framework.The panel unit root and cointegration tests revealed that in the long run,the variables were stationary and cointegrated.Furthermore,the panel cointegration estimates revealed that trade has both positive and negative effects on emissions,but the effect differs by group.The existence of the Environmental Kuznets Curve（EKC）in the sets panel applying the square term for growth was noted in the study;it was thought to have a negative impact,signalling that growth would reduce environmental pollution over time.Based on the outcome of the study,carbon emissions can be reduced in a sustainable manner,by formulating and implementing trade policies and encouraging the use of renewable energy.Extensive efforts must be aim at creating a national trade strategy that identifies the various nations in the study analysis in terms of the long-term trade goal,while establishing goals and outlining how industries programs can be introduced in a sustainable manner,moreover a persistent drive for trade liberalization,including non-tariff legislation,and new trade arrangements should be assessed.Setting up trade policies to enhance or support the industrial sectors through a stable macroeconomic environment,regional integration which can leverage on regional trade and also enhance foreign trade as well.Economic growth can be facilitated by a sustainable long-term trade strategy.The study’s findings recommend that strict policies and strict compliance should be enforced to ensure long-term growth without related environmental issues.