Examining the Role of Trade on the Relationship between Environmental Quality and Energy Consumption: Insights from Sub Saharan Africa

Abstract

This study looks at the relationship between energy consumption and environmental quality in Sub-Saharan Africa (SSA) and how trade with other countries affects it. It examines data from 35 SSA economies between 1996 and 2020, categorized into low-income (LICs) and middle-income (MIC) countries. Using the cross-sectional augmented autoregressive distributed lag (CS-ARDL) approach, the results show that energy use, especially in MICs, negatively affects environmental quality. Trade, however, considerably lessens these detrimental environmental implications of energy consumption. According to the study, legislative actions intended to stop environmental deterioration in Sub-Saharan Africa should take into account the unique political and economic circumstances of each country. In addition, authorities should strike a balance between economic interests and environmental concerns, particularly in sectors dependent on the importation of used goods, and trade and environmental regulatory agencies must work together to enforce age restrictions on imported used items.