Direct and indirect effects of energy intensity on environmental quality in West Africa

Abstract This paper aims to analyze the environmental effect of energy intensity and its role in determining the impact of industrial production and transport services on environmental quality in West African countries. Based on co-integration relationships and exogeneity tests, we estimate a vector error correction model with exogenous variables for 14 countries. The results show that economic growth, industrial production, and higher energy intensity increase greenhouse gas emissions in the long term. Thus, improving energy efficiency through a reduction in its intensity should generate a positive environmental impact. Furthermore, increasing energy intensity amplifies the adverse environmental effects of industrialization, confirming a positive relationship between industrialization and environmental quality. The sectoral impact of energy efficiency strategies should therefore be questioned. These findings imply that policymakers in West African countries should implement environmental awareness programs and policies that increase energy efficiency by supporting energy-saving technologies and promoting an eco-friendly transportation policy.