The environmental tale of two countries: Determinants of CO2 emissions in South Africa and Australia

Abstract

This study examines the long-run and short-run impact of GDP, urbanization, exports, agri- cultural activity, air travel, and electricity production on CO2 emissions in South Africa and Australia. Results from the ARDL model show that South Africa's heavy reliance on coal for electricity generation significantly impacts CO2 emissions. Furthermore, South Africa's urban population is associated with a concomitant increase in CO2 emission in the long-run. On the other hand, our results show that agricultural land and air transportation have a negative cor- relation with CO2 emissions in South Africa. These results are markedly different from Aus- tralia's long-run estimates, where agricultural land is identified as the significant contributor to CO2 emissions. Additionally, urbanization in Australia is negatively related to CO2 emis- sions. The findings underscore a significant long-term policy challenge for Australia, as fac- tors such as electricity production, agricultural land usage, air travel, GDP, and exports in- crease CO2 emissions. In the case of South Africa, the policy challenge lies in developing policies that will help the country transition from coal-generated electricity to renewable en- ergy and promote efficient urban planning policies.