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The role of income level and institutional quality in the non‐renewable energy consumption and life expectancy nexus: evidence from selected oil‐producing economies in Africa
Author(s) -
Ibrahim Ridwan Lanre,
Ajide Kazeem Bello
Publication year - 2021
Publication title -
opec energy review
Language(s) - English
Resource type - Journals
eISSN - 1753-0237
pISSN - 1753-0229
DOI - 10.1111/opec.12212
Subject(s) - life expectancy , economics , nexus (standard) , expectancy theory , panel data , renewable energy , language change , unit root , empirical research , econometrics , engineering , sociology , demography , art , population , philosophy , electrical engineering , management , literature , epistemology , embedded system
Abstract This study examines the functional relationship between non‐renewable energy (NRE) and life expectancy in four selected oil‐producing African countries (Algeria, Egypt, Libya and Nigeria) from 1990 to 2017. The role of income level and institutional quality (captured by control of corruption and regulatory quality) is evaluated to ascertaining the moderating or exacerbating effects of NRE (measured by natural gas, fuel and coal) on life expectancy. The empirical analyses are anchored on a set of preliminary tests consisting of cross‐sectional dependence test, panel unit root tests and co‐integration test, respectively. In the final analysis, the fully modified OLS panel method is engaged for model estimation. The empirical results reveal the negative effect of NRE on life expectancy both in models. Besides, the positive effects of income level are helpful in subduing the negative impacts of NRE on life expectancy while that of institutional quality further exacerbates it. The impacts of renewable energy and carbon emissions on life expectancy are recorded in a reverse direction. Relevant policy implications are advanced in the light of these emanating outcomes.