The Relationship Between Renewable Energy Consumption, Economic Growth and Carbon Dioxide Emissions in Ethiopia: Empirical Evidence from ARDL Bound Testing Model

Melaku Adinew


Environmental degradation is caused by the use of energy consumption for economic development. The purpose of this study is to examine the relationship between renewable energy consumption and economic growth and CO2 emission in Ethiopia by using annual time series data from 1990 to 2017. The results of the ARDL study show that renewable energy reduces carbon emissions while economic growth increases CO2 emissions in Ethiopia in both in long run and short run. In light of this result, it is recommended that the government of Ethiopia should develop and introduce such renewable energy sources to replace the growing energy needs of modern businesses. Renewable energy sources can be recycled to reduce carbon emissions and ensure sustainable economic development in Ethiopia.

Keywords: Renewable energy, Economic growth, CO2 emissions, ARDL, Ethiopia

DOI: 10.7176/JETP/10-3-02

Publication date:July 31st 2020

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ISSN (Paper)2224-3232 ISSN (Online)2225-0573

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