Secular Stagnation and Low Interest Rates under the Fear of a Government Debt Crisis

The recent environmental challenges in Africa emanated from global warming, human
activity, limited access to electricity, and over exploitation of natural resources, have
contributed to the growth of carbon dioxide (CO2) emissions in the region. This paper
empirically investigates the moderating role of green energy consumption and energy
innovation in the environmental Kuznets’ curve for the Sub-Saharan African (SSA)
region using data spanning from 1980 to 2018. Our threshold model found that at least
54 per cent of population need access to energy innovation before the region could be
safe from environmental degradation. We conclude that investment in green energy,
energy innovation, and conservation of natural resources will help to mitigate
environmental degradation in SSA in the long run. Policies should be targeted towards
encouraging the consumption of green energy, and more investment in energy
innovation beyond the estimated threshold will save the region from pollution and its
implications.