THE IMPACT OF ECONOMIC GROWTH, FOREIGN DIRECT INVESTMENT, AND ENERGY ON CLIMATE CHANGE IN WEST AFRICA

This paper examines the relationship between economic growth, foreign direct investment (FDI), energy consumption, and carbon emissions in West Africa, testing the Environmental Kuznets Curve (EKC) hypothesis. Employing panel data from 16 countries over the period 1990 2023, the study utilizes the Pooled Mean Group (PMG) estimator within the panel ARDL model to differentiate short-term dynamics from long-term relationships. The findings support the EKC hypothesis, demonstrating that carbon emissions initially increase with economic growth but decline after reaching a certain threshold. Energy consumption is identified as the primary driver of emissions, exhibiting significant positive effects in both the short and long term. Conversely, FDI appears to have no significant long-term influence, indicating that foreign investment does not facilitate environmental improvement under current conditions. The error correction mechanism suggests a stable long-run adjustment process. These results emphasize the importance of transitioning to renewable energy sources and enhancing environmental regulations to promote sustainable development.