Vol. 10, Issue 12, Part C (2024)
Green economy and green trade: Evidence from WAMZ countries
Green economy and green trade: Evidence from WAMZ countries
Author(s)
OBORO Emmanuel David
Abstract
The aim of this study is to investigate the ways in which green trade, green energy production, and green innovation support green economic growth in the West African Monetary Zone (WAMZ) member countries. Information on WAMZ economies for the years 2000–2023 is derived from a number of sources, including the Organization for Economic Co-operation and Development (OECD), International Energy Statistics (IES), and World Development Indicators (WDI). The cointegration test by Wasteland (2007) is used to examine the long-term relationships between the modeled variables, and the second-generation unit root test by Pesaran (2007) is used to evaluate the stationarity of the data. The long-term relationships between the modeled variables—which eventually reach a stationary state—are validated by the study. The study confirmed the modeled variables' long-term correlation, which become stationary at the first differences. To estimate the empirical results, the study also employed fully modified least squares (FMOLS) and dynamic least squares (DOLS). The results of the study show that green energy, green innovation, and green trade are driving growth in the green economy of the West African Monetary Zone (WAMZ).