The carbon dioxide emission effects of domestic credit and manufacturing indicators in South Africa
Management of Environmental Quality
ISSN: 1477-7835
Article publication date: 24 June 2020
Issue publication date: 16 October 2020
Abstract
Purpose
Carbon dioxide emission is one of the key causes of global warming and climate change. This study investigates the effects of domestic credit and manufacturing indicators on the emission of carbon dioxide in South Africa.
Design/methodology/approach
The paper relied on time series data from 1975 to 2014 and employed regression and variance decomposition methods to analyze the data.
Findings
In the long run, manufacturing output increases total carbon emissions and emissions from solid fuel; manufactures trade reduces carbon emissions and domestic credit reduces emissions from the manufacturing industries and construction. The long-run effect of the changing technical characteristics of the manufacturing sector is sensitive to the estimation technique used. In the short run, however, changing technical characteristics of the manufacturing sector affect the level of carbon emissions. Income increases emissions from manufacturing industries and construction and urbanization increases total carbon emissions.
Research limitations/implications
Policymakers have to initiate effective policies to promote energy-efficient technologies among manufacturing firms.
Originality/value
The paper examines the effect of manufacturing on carbon dioxide emissions in South Africa. It also examines the possible effect of manufactures trade on carbon emissions. Moreover, the possible effect of the changing characteristics of the manufacturing sector on carbon emissions is investigated.
Keywords
Acknowledgements
The authors are grateful to the anonymous reviewers whose useful comments have helped in shaping this research.Availability of data and materials: The datasets generated and/or analysed during the current study are available from the Word Bank Development Indicators website (http://databank.worldbank.org/data/reports.aspx?source=world-development-indicators#). Competing interests: The authors declare there is no competing interest. Funding: The research did not receive any funding support from any organization. Authors' contributions: PAK: conceived the research idea, worked on the methodology, generated and analyzed the data. FA-P, discussed the results and offered the relevant policy implications. All authors read and approved the final manuscript.
Citation
Kwakwa, P.A. and Adusah-Poku, F. (2020), "The carbon dioxide emission effects of domestic credit and manufacturing indicators in South Africa", Management of Environmental Quality, Vol. 31 No. 6, pp. 1531-1548. https://doi.org/10.1108/MEQ-11-2019-0245
Publisher
:Emerald Publishing Limited
Copyright © 2020, Emerald Publishing Limited