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Fostering a Sustainable Future in Somalia: Examining the Effects of Industrialization, Energy Consumption, and Urbanization on Environmental Sustainability

Abdi, Abdikafi Hassan and Hashi, Mohamed Ahmed (2024) Fostering a Sustainable Future in Somalia: Examining the Effects of Industrialization, Energy Consumption, and Urbanization on Environmental Sustainability. International Journal of Energy Economics and Policy.

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Abstract

While existing research has extensively explored the individual impacts of energy consumption, industrialization, and urbanization on environmental
sustainability, there remains a notable gap in understanding the synergistic effects of these factors within the context of rapidly developing regions,
such as Somalia. Therefore, this study explores the impacts of energy consumption, industrialization, and urbanization on environmental sustainability
in Somalia from 1990 to 2020. The long-run linkage among the variables of the study was confirmed using the bounds-testing approach. The findings
from the ARDL model indicate that economic growth, energy consumption, and trade openness significantly exacerbate environmental pollution in
Somalia in the short- and long-run. Conversely, while industrialization and urbanization reduce environmental pollution both the short- and long-run,
urbanization does not demonstrate a statistically significant impact. The long-run findings of the study were validated using the DOLS and FMOLS
approaches. The Granger causality analysis reveals unidirectional causalities from environmental pollution to GDP per capita, industrialization, and
trade openness, as well as from energy consumption to environmental degradation. However, no causal linkage is detected between urbanization and
environmental pollution within Somalia. Based on the results of the study, we propose the promotion of renewable energy sources, green industrialization
strategies, urban planning and sustainable development, and enhanced monitoring and regulation to effectively address environmental degradation.
Keywords: Energy Consumption, Industrialization, Urbanization, Economic Growth, Trade Openness, Environmental Pollution
JEL Classifications: C32, Q01, Q43, Q56, O55

Item Type: Article
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: 20 Sep 2025 11:43
Last Modified: 20 Sep 2025 11:43
URI: https://repository.simad.edu.so/id/eprint/350

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