Addressing the impact of environmental pollution and renewable energy on economic growth in Somalia

Abstract

The world’s most vulnerable countries face a serious threat to their ability to prosper economically due to climate change. Illustrating the link between environmental pollution, renewable energy, and economic growth is essential for reducing the impact of increasing anthropogenic emissions and climate change. Deforestation, severe droughts, and floods are major problems in Somalia. The primary cause of Somalia’s climate issues is the country’s reliance on traditional biomass energy sources, such as firewood and charcoal. In this context, this article examines CO2 emissions, renewable energy, capital, and labor in relation to economic growth in Somalia from 1989 to 2021. The long-run and short-run Cointegration of the variables was assessed using an ARDL bound test. The study found that a 1% increase in CO2 and renewable energy leads to increases in economic growth of around 5.48% and 46.14%, respectively, indicating a significant impact of CO2 and renewable energy on economic growth in the short and long run in Somalia. Nevertheless, the study suggests policy reforms and investments in clean energy, such as solar and natural gas, rather than fossil fuels, firewood, and charcoal.