RESEARCH ARTICLE Causality links among renewable energy consumption, CO 2 emissions, and economic growth in Africa: evidence from a panel ARDL-PMG approach Imed Attiaoui 1 & Hassen Toumi 2 & Bilel Ammouri 3 & Ilhem Gargouri 2 Received: 4 November 2016 /Accepted: 16 March 2017 # Springer-Verlag Berlin Heidelberg 2017 Abstract This research examines the causality (For the re- mainder of the paper, the notion of causality refers to Granger causality.) links among renewable energy consumption (REC), CO 2 emissions (CE), non-renewable energy consumption (NREC), and economic growth (GDP) using an autoregressive distributed lag model based on the pooled mean group estima- tion (ARDL-PMG) and applying Granger causality tests for a panel consisting of 22 African countries for the period between 1990 and 2011. There is unidirectional and irreversible short- run causality from CE to GDP. The causal direction between CE and REC is unobservable over the short-term. Moreover, we find unidirectional, short-run causality from REC to GDP. When testing per pair of variables, there are short-run bidirec- tional causalities among REC, CE, and GDP. However, if we add CE to the variables REC and NREC, the causality to GDP is observable, and causality from the pair REC and NREC to economic growth is neutral. Likewise, if we add NREC to the variables GDP and REC, there is causality. There are bidirec- tional long-run causalities among REC, CE, and GDP, which supports the feedback assumption. Causality from GDP to REC is not strong for the panel. If we test per pair of variables, the strong causality from GDP and CE to REC is neutral. The long- run PMG estimates show that NREC and gross domestic prod- uct increase CE, whereas REC decreases CE. Keywords Renewable energy . Non-renewable energy . CO 2 emissions . Growth . Panel ARDL JEL classification C33 . O55 . Q20 . Q30 Introduction Owing to climate change and following their commitment to the Kyoto Protocol, developed and developing countries are pursuing new energy sources to reduce CO 2 emissions, Lee and Chang (2008). However, it is established that for the ma- jority of African countries, investment in renewable energy is costly due to a lack of capital resources. Africa is a major source of renewable energy; if such resources could be fully exploited, the image of the African continent could be trans- formed from one suffering from poverty to that of an econom- ic power able to stimulate the world economy. The African population is growing and will reach 2 billion by the year 2050; IRENA (2013). This increase will result in higher ener- gy consumption. Africa has some of the largest renewable energy resources in the world. In addition to its potential for hydroelectric and geothermic energy generation, the continent has abundant so- lar radiation throughout the year, and experts agree that wind Responsible editor: Philippe Garrigues * Imed Attiaoui omda.attiaoui@gmail.com Hassen Toumi toumihass@gmail.com Bilel Ammouri bilel.ammouri@gmail.com Ilhem Gargouri ilhemgargouri@gmail.com 1 Laboratory of Economics and Applied Finance (LEFA). Institut des Hautes Etudes Commerciales de Carthage, University of Carthage, Tunis, Tunisia 2 University of Economics and Management of Sfax, (URED), Street of Airport km 4.5, LP 1088, 3018 Sfax, Tunisia 3 University of Carthage (UR MASE) and University of Tunis (ESSEC Tunis), Tunis, Tunisia Environ Sci Pollut Res DOI 10.1007/s11356-017-8850-7