The Dynamic Links between Renewable Energy and Environmental Quality in an Insecure Situation

Abstract

The world faces two main problems: environmental degradation and the growing number of terrorist attacks. This study provides new perspectives by evaluating the links between environment quality, renewable energy consumption, terrorist attacks and the rents of natural resources for forty-six African countries over the period 1991-2017. We applied a heterogeneous panel data approach and second-generation econometric techniques, which took into account cross-sectional dependence and heterogeneity. The long-term effects were obtained by amg and ccmg estimators. The results confirmed the existence of a cross-sectional dependence between the individuals in the panel. In addition, the long-term relationship confirms the existence of an inverted U-shaped curve between co2 emissions and the level of gdp. Renewable energies stimulate the improvement of environmental quality in the long term whereas terrorist attacks contribute to environmental degradation. Thus, policymakers are called upon to promote renewable energies and to implement good governance of rents.