Balancing environmental sustainability and international trade: a dynamic analysis of factors influencing renewable energy generation in Cameroon
摘要
The transition to renewable energy is crucial for achieving environmental sustainability and mitigating Climate change, especially in developing nations such as Cameroon. This study investigates the factors influencing renewable energy generation (REG) in Cameroon from 1980 to 2014, focusing on CO2 emissions, trade openness, and official development assistance (ODA). Utilizing advanced econometric techniques such as the dynamic autoregressive distributed lag (ARDL) simulations and kernel-based regularized least squares (KRLS), this research provides a comprehensive analysis of the determinants of REG. The results indicate that CO2 emissions positively impact REG in the long term, while trade openness has a negative influence. ODA shows a positive long-term effect on REG, highlighting its role in promoting renewable energy. The ARDL dynamic simulation model reveals that negative shocks in CO2 emissions can positively impact REG, whereas reductions in trade openness and ODA negatively affect it. The KRLS model further confirms these findings, showing that a 1% increase in ODA results in a 0.06% increase in REG, and a similar increase in CO2 emissions results in a 0.07% increase in REG but with diminishing returns. This study highlights the significance of balancing CO2 emissions, trade openness, and ODA in promoting REG in Cameroon. Policymakers should focus on on lowering CO2 emissions, promoting international trade, and effectively channeling ODA towards renewable energy projects to achieve sustainable energy development.
Graphical abstract