This research investigates the intricate relationships between agriculture, renewable energy, economic growth, and carbon dioxide (CO2
) emissions in
Somalia from 1991 to 2022. This study uses the autoregressive distributed lag (ARDL) model and Granger causality tests to understand their impact
on environmental sustainability. ARDL results reveal a negative role of agriculture and renewable energy on CO2 in the short and long term. The
country’s reliance on fossil fuels and biomass further intensifies CO2
emissions. While economic growth is essential for improving living standards, it
positively correlates with CO2
emissions in the short and long term, emphasizing the challenge of decoupling economic development from environmental
degradation. Domestic investment has a short-run relation only to CO2
emissions. In Granger causality tests, the results indicated that Agriculture and
domestic investment have bidirectional causality to carbon dioxide emissions. On the other hand, renewable energy, economic growth, and domestic
investment have unidirectional causality to Agriculture in Somalia, while domestic investment has bidirectional causality to renewable energy and
economic growth. The study recommends implementing comprehensive and integrated approaches to prioritize sustainable development strategies,
clean energy alternatives, and efficient agricultural practices. Promoting economic growth while also focusing on capacity-building and awareness
campaigns is essential. Collaborating with the international community on climate change mitigation and sustainable development initiatives can
further support Somalia’s journey toward environmental sustainability.
Keywords: Renewable Energy, CO2
Emissions, Agriculture, Domestic Investment, Somalia
JEL Classifications: Q42, Q53, C22, O55