Economic challenges and opportunities in climate change: The case of Africa
Abstract:
Purpose: This study aims to identify the causes and consequences of CC and some important economic potentials/opportunities and challenges for addressing CC.
Research Methodology: This paper reviews the state of knowledge on the challenges of CC, particularly the challenges related to the large uncertainties in CC projections for parts of Africa, and opportunities in energy transition modeling and projections in Africa, which can be integrated with a relatively modest effort within a shift in Africa from an economic challenges view of CCs to a long-term perspective that emphasizes livelihood security and vulnerability reduction. This study reviews the literature to assess the challenges and opportunities of CC Africa. It also identifies policy recommendations.
Results: The study found that to capitalize on the economic opportunities and bridge the economic challenges gap, governments in Africa, and technical and financial partners need to actively promote renewable energy and energy efficiency through investment incentives towards developing low-carbon economies.
Conclusions: Climate change is a two-sided issue. It is a threat to our existence, but it also offers humanity a chance to get things right for future generations.
Limitations: The study is limited to peer-reviewed research papers that cover part or the whole of Africa, concerned with the issue of the climate changes
Contribution: The findings will be useful in informing African countries’ national and international processes concerned with the implementation of various international agreements on CC and the achievement of the 2030 Agenda on Sustainable Development.
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- Africa, U. N. E. C. f. (2024). Economic growth, development and climate change in Africa. Retrieved from Addis Ababa, Ethiopia: https://archive.uneca.org/sites/default/files/uploaded-documents/ACPC/annex_21b_-_climate_change_impacts_on_africas_economic_growth_-_report.pdf
- Ali, M. M. M., & Yu, Q. (2021). Assessment Of The Impact Of Renewable Energy Policy On Sustainable Energy For All In West Africa. Renewable Energy, 180, 544-551. doi:https://doi.org/10.1016/j.renene.2021.08.084
- Alliance, A. G. H. (2022). Africa’s green hydrogen potential. Retrieved from
- Bank, W. (2008). World development indicators 2008. Retrieved from
- Bank, W. (2021). Africa’s pulse: An analysis of issues shaping Africa’s economic future. Retrieved from Washington, DC: https://openknowledge.worldbank.org/handle/10986/35297
- Barrios, S., Bertinelli, L., & Strobl, E. (2010). Trends In Rainfall And Economic Growth In Africa: A Neglected Cause Of The African Growth Tragedy. The Review of Economics and Statistics, 92(2), 350-366. doi:https://doi.org/10.1162/rest.2010.11212
- Bhattacharya, A., & Stern, N. (2021). Beyond the $100 billion: financing a sustainable and resilient future. Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science, London.
- CFR. (2015). Global climate agreements. Retrieved from https://www.cfr.org/backgrounder/paris-global-climate-change-agreements
- Dauda, L., Long, X., Mensah, C. N., Salman, M., Boamah, K. B., Ampon-Wireko, S., & Dogbe, C. S. K. (2021). Innovation, trade openness and CO2 emissions in selected countries in Africa. Journal of cleaner production, 281, 125143. doi:https://doi.org/10.1016/j.jclepro.2020.125143
- Dioha, M. (2017). Energy System Models For Sub-Saharan African Countries--A Systematic Review. Journal of Sustainable Energy, 8(4).
- Dioha, M. O., Emodi, N. V., & Dioha, E. C. (2019). Pathways for low carbon Nigeria in 2050 by using NECAL2050. Renewable energy focus, 29, 63-77. doi:https://doi.org/10.1016/j.ref.2019.02.004
- Dioha, M. O., & Kumar, A. (2020). Exploring sustainable energy transitions in sub-Saharan Africa residential sector: The case of Nigeria. Renewable and Sustainable Energy Reviews, 117, 109510. doi:https://doi.org/10.1016/j.rser.2019.109510
- Dumpis, T. (2021). Vinci Energies to expand Benin’s electricity infrastructure.
- Hako, N. (2022). $425m facility to fund gas midstream projects in Ghana. Retrieved from https://www.esi-africa.com
- Hallegatte, S. (2016). Shock waves: managing the impacts of climate change on poverty. Washington, DC: World Bank Publications.
- Henseler, M., & Schumacher, I. (2019). The impact of weather on economic growth and its production factors. Climatic Change, 154(3), 417-433. doi:https://doi.org/10.1007/s10584-019-02441-6
- IEA. (2022). Egypt–Saudi electricity interconnection project. Retrieved from Paris, France: https://www.iea.org/
- Igbokwe-Ibeto, C. J. (2019). Climate change, food security and sustainable human development in Nigeria: A critical reflection. Africa’s Public Service Delivery and Performance Review, 7(1), 1-9. doi:https://doi.org/10.4102/apsdpr.v7i1.322
- Ijaiya, G. T., Ijaiya, M. A., & Ojuolape, M. A. (2016). Climate change and poverty: A review. In S. L. Tilakasiri (Ed.), Water, land and people in climate change: Issues, challenges and prospective (pp. 353–364). Pannipitiya, Sri Lanka: Stamford Lake (PVT).
- IPCC. (2007). Climate change 2007: Synthesis report. Retrieved from Geneva, Switzerland:
- IPCC. (2023). Anthropogenic emissions and unsustainable industrial practices. Retrieved from Geneva, Switzerland: https://www.ipcc.ch/
- Irowarisima, M. (2020). African energy challenges in the transition era: the role of regional cooperation Energy transitions and the future of the African energy sector: Law, policy and governance (pp. 37-72): Springer.
- Kidunduhu, N. (2020). Energy transition in Africa: Context, barriers and strategies Energy Transitions and the Future of the African Energy Sector: Law, Policy and Governance (pp. 73-111): Springer.
- Lin, B., & Sai, R. (2022). Towards low carbon economy: Performance of electricity generation and emission reduction potential in Africa. Energy, 251, 123952. doi:https://doi.org/10.1016/j.energy.2022.123952
- McKinsey. (2022a). Global energy perspective 2022. Retrieved from https://www.mckinsey.com/industries/oil-and-gas/our-insights/global-energy-perspective-2022
- McKinsey. (2022b). The net-zero transition: What it would cost, what it could bring. Retrieved from https://www.mckinsey.com/capabilities/sustainability/our-insights/the-net-zero-transition-what-it-would-cost-what-it-could-bring
- Momodu, A. S. (2017). Energy use: electricity system in West Africa and climate change impact. International Journal of Sustainable Energy Planning and Management, 14, 21-38. doi:https://doi.org/10.5278/ijsepm.2017.14.3
- Muller, C., & Yan, H. (2018). Household fuel use in developing countries: Review of theory and evidence. Energy Economics, 70, 429-439. doi:https://doi.org/10.1016/j.eneco.2018.01.024
- Mutezo, G., & Mulopo, J. (2021). A review of Africa's transition from fossil fuels to renewable energy using circular economy principles. Renewable and Sustainable Energy Reviews, 137. doi:https://doi.org/10.1016/j.rser.2020.110609
- NASA. (2011). What are climate and climate change? Retrieved from https://www.nasa.gov
- Nation, U. (2023). Peace, dignity and equality on a healthy planet. Retrieved from https://www.un.org/en/global-issues
- Nnaji, J., & Igbuku, A. (2019). Improving the eco-innovation status of Africa using sustainable chemistry principles. European Journal of Sustainable Development Research, 3(1), 1-9. doi:https://doi.org/10.20897/ejosdr/3934
- Oxfam. (2020). Climate finance shadow report 2020: Assessing progress towards the $100 billion commitment. Retrieved from
- Oyewo, A. S., Aghahosseini, A., Ram, M., & Breyer, C. (2020). Transition towards decarbonised power systems and its socio-economic impacts in West Africa. Renewable Energy, 154, 1092-1112. doi:https://doi.org/10.1016/j.renene.2020.03.085
- Rahhou, J. (2022). Total Eren to launch green hydrogen megaproject in Morocco. Retrieved from https://www.moroccoworldnews.com/
- Ray, C. A. (2021). The impact of climate change on Africa’s economies. Retrieved from https://www.oxfam.org/
- Renewal, A. (2021). Climate change triggers food insecurity, poverty and displacement in Africa. Retrieved from https://www.un.org/africarenewal/magazine/november-2021/climate-change-triggers-food-insecurity-poverty-and-displacement-africa
- Sarkodie, S. A., Adams, S., & Leirvik, T. (2020). Foreign direct investment and renewable energy in climate change mitigation: does governance matter? Journal of cleaner production, 263. doi:https://doi.org/10.1016/j.jclepro.2020.121262
- Shukla, P. R., Skea, J., Slade, R., Al Khourdajie, A., van Diemen, R., McCollum, D., . . . Fradera, R. (2022). Climate change 2022: Mitigation of climate change (Vol. 10). United Kingdom: Cambridge University Press.
- Tazvinga, H., Dzobo, O., & Mapako, M. (2020). Towards sustainable energy system options for improving energy access in Southern Africa. Journal of Energy in Southern Africa, 31(2), 59-72. doi:https://doi.org/10.17159/2413-3051/2020/v31i2a6504
- UPSC. (2015). List of environmental conventions and protocols. Retrieved from https://byjus.com/free-ias-prep/environment-conventions-protocols/
- Wanzala, M. A., & Cloke, H. L. (2021). What can Africa learn from other countries about combatting severe floods? Retrieved from https://www.preventionweb.net/news/what-canafrica-learn-other-countries-about-combatting-severe-floods