Environmental Pollution Nexus Economic Growth and Energy Consumption

Abstract

This paper tests relationship between Rwanda’s environmental pollution, human capital, physical capital, economic growth and energy consumption as Solow model function in period of 1990 and 2018. Paper used Johansen co-integration test method to estimate the long-run coefficients with the constant level relationship of variables and VAR for short-run coefficients. Verification of long runs co-integration equilibrium Rwanda’s air pollution was found to depend on energy consumption significantly and economic growth insignificantly with positive coefficient and, slightly incline CO2 emission pollution. One percent increase to physical capital and human capital with negative coefficients and significance decline CO2 emission pollution. VAR implies that human capital affects Rwanda’s air pollution for short-term. Rwandan’s government should promote policies on new technology in economic development and, the managing method of human capital, physical capital and energy consumption to reduce CO2 emission that can adopted by government’s sustainable environmental protection.