TITLE:
The Effects of Green Energy and CO2 Emissions on Sustainable Economic Development in Southern African Development Community
AUTHORS:
Ernesto Munguambe Gabriel, Vasco Macarringue Darcilio, Jessica Katia Mahoughon Babi, Armando Massoca Torronda, Edna Bibiana Tomas Marnela, Dominique Marlene Kadi
KEYWORDS:
Southern African Development Community (SADC), Green Energy, CO2 Emissions, Sustainable Economic Development, System GMM Model
JOURNAL NAME:
Modern Economy,
Vol.16 No.1,
January
20,
2025
ABSTRACT: The present research endeavor explores the effects of embracing renewable energy and CO2 emissions on the prosperous economic development underneath the Southern African Development Community (SADC). This study delves into the paramount role of renewable energy sources, consisting of solar, wind, and hydropower, in promoting prosperity and mitigating CO2 emissions throughout energy transitions. Employing panel data from 16 SADC nations spanning from 1990 to 2023 and leveraging system GMM estimation, we explore the multifaceted connections among green energy, CO2 emissions, governance quality, and trade openness. The findings signal that embracing green energy substantially enhances sustainable economic development through greater energy access, advancing expansion of industry, and mitigating the adverse ecological effects associated with fossil fuel consumption. Nonetheless, the influence of CO2 emissions on the long-term trajectory of economic development appears to be statistically insignificant in the regression findings. The study underscores the vitality of strengthened governance and enhanced trade openness in promoting the widespread adoption of green technologies and practices, elevating access to pristine energy solutions, and encouraging worldwide cooperation. Strategic initiatives, which comprise substantial government investments in forefront renewable energy infrastructure, sophisticated regulatory frameworks to minimize emissions, and proficient energy efficiency projects, are of the upmost significance. The study elegantly conveys the vital facets of governance, technological innovation, and regional collaboration, providing refined recommendations for policymakers in the SADC region to further foster sustainable economic development to attain persistent ecological objectives.