Abdi, Abdikafi Hassan (2025) Transitioning to sustainable energy and enhanced environmental quality in Somalia through renewable energy, globalisation and trade openness. Transitioning to sustainable energy and enhanced environmental quality in Somalia through renewable energy, globalisation and trade openness.
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Abstract
A balanced approach that combines trade policies, renewable energy promotion, and robust
environmental regulations is crucial for improving ecological sustainability. Although the literature
suggests that trade openness facilitates the transfer of cleaner energy technologies to developing
nations, existing empirical studies have produced inconclusive results, particularly in Somalia’s
context. Therefore, this study explores the dynamic relationships between renewable energy, trade
openness, economic growth, globalisation, and environmental degradation using annual time-series
data from 1990 to 2019. Employing advanced econometric methods, including the autoregressive
distributed lag (ARDL) model and dynamic OLS analyses, the findings reveal significant long-run
cointegration among the variables. The essential insights of this study affirm that renewable energy
strengthens environmental quality in both the short- and long-run, which stipulates its potential
as a sustainable solution for Somalia. Conversely, trade openness has a detrimental impact on
environmental quality in both the short- and long-run. While globalisation hinders environmental
quality in the short-run, economic growth improves it. In addition, variance decomposition analysis
highlighted that environmental deterioration was mainly self-perpetuating, accounting for 49% of the
fluctuations. Additionally, variations in renewable energy sources are closely linked to environmental
degradation, reinforcing the importance of adopting clean energy sources. Considering these
findings, this study proposes establishing clear renewable energy strategies, leveraging globalisation
for sustainable investments, and enforcing stringent environmental regulations that balance the
benefits of trade openness. These observations provide a valuable framework for future research to
examine sector-specific interventions and the long-term impacts of trade and energy policies on fragile
economies.
Item Type: | Article |
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Subjects: | A General Works > AC Collections. Series. Collected works |
Divisions: | Faculty of Economics |
Depositing User: | Unnamed user with email crd@smiad.edu.so |
Date Deposited: | 10 Sep 2025 08:39 |
Last Modified: | 10 Sep 2025 10:47 |
URI: | https://repository.simad.edu.so/id/eprint/10 |