Transitioning to sustainable energy sources is imperative for Somalia as the country grapples with severe environmental degradation driven by traditional energy practices and open trade policies. A recent study has explored the dynamic interactions between renewable energy adoption, trade openness, economic growth, globalisation, and environmental quality over nearly three decades.
The research employed advanced econometric approaches, including the autoregressive distributed lag (ARDL) model, to analyze annual data from 1990 to 2019. The authors discovered overwhelmingly significant long-run relationships among these variables, emphasizing the pressing need for Somalia to pivot toward renewable energy as part of its broader economic development strategy.
Key findings revealed renewable energy’s positive impacts, bolstering environmental quality both short and long-term. Conversely, the research delineated how trade openness—while often linked to economic benefits—has paradoxically contributed to environmental deterioration. According to the authors, “trade openness contributes to long-term environmental degradation, which is particularly harmful for environments like Somalia's.”
Examining the challenges Somalia faces, the study identified the predominant reliance on biomass energy sources like firewood and charcoal, which comprise 80% to 90% of the country's energy consumption. This dependency results not only in resource depletion but also ecological instability, exacerbated by decades of conflict and inadequate infrastructure. “The results indicate environmental degradation is primarily self-perpetuating, accounting for nearly half of the fluctuations,” the authors stated, underscoring the urgent need for intervention.
The researchers argue enhancing the uptake of renewable energy technologies can substantially improve Somalia’s environmental outcomes. Renewable energy provides multiple benefits, such as reducing carbon emissions and reliance on imported fossil fuels, positioning the country to leapfrog unsustainable development practices. A careful analysis indicated “renewable energy significantly improves environmental quality both in the short and long run.”
Despite the favorable prospects of renewable energy, the study highlighted the detrimental effects of trade policies. Increased trade openness has led to the importation of environmentally harmful practices, as Somalia often relies on goods manufactured elsewhere, sometimes under lax environmental standards. “Stronger governance and renewable energy policies correlate with improved environmental outcomes,” the study suggests, indicating the importance of building regulatory frameworks to facilitate this transition.
Notably, the study outlined policy recommendations urging Somali authorities to implement clear renewable energy strategies. These strategies should include setting tangible targets for increasing renewable energy sources within the national grid, seeking foreign direct investment, and establishing limits on environmentally harmful imports.
Overall, the findings provide not just insights but also practical frameworks for enhancing Somalia’s energy policies, aligning economic growth with environmental sustainability. With the right strategies and investments, Somalia could emerge as a leader in renewable energy within the region, promoting both ecological health and economic resilience.