REGS Outils de lecture

In this study, we assess the effect of energy consumption in the transport sector, foreign direct investment (FDI), economic growth, and urbanization on carbon dioxide (CO2) emissions in West African Economic and Monetary Union (WAEMU) countries over the period 1990-2015. It also attempts to validate the Environmental Kuznets Curve (EKC) hypothesis. Using Pedroni and Kao cointegration methods, our results suggest a cointegrating relationship between transport energy consumption, FDI, urbanization, growth and CO2 emissions in WAEMU countries. Long-term GMP estimation suggests that these variables significantly influence CO2 emissions. Economic growth plays a larger role in the contribution to CO2 emissions. Thus, we find that the inverted U-shaped EKC hypothesis is validated for WAEMU countries. As a policy option, controlling energy consumption in the transport sector can lead to a significant reduction in CO2 emissions. Alternatively, we suggest that policymakers place greater emphasis on an energy-efficient transportation system and on policies to minimize fossil fuel consumption. In this way, environmental quality can be improved with a less deleterious impact on economic growth.