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Governance,CO2 emissions and inclusive human development in Sub-Saharan Africa

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  • Asongu, Simplice A
  • Odhiambo, Nicholas M
Abstract
This study investigates the relevance of government quality in moderating the incidence of environmental degradation on inclusive human development in 44 sub-Saharan African countries for the period 2000-2012. Environmental degradation is measured with CO2 emissions and the governance dynamics include: political stability, voice and accountability, government effectiveness, regulation quality, the rule of law and corruption-control. The empirical evidence is based on the Generalised Method of Moments. Regulation quality modulates CO2 emissions to exert a net negative effect on inclusive development. Institutional governance (consisting of corruption-control and the rule of law) modulates CO2 emissions to also exert a net negative effect on inclusive human development. Fortunately, the corresponding interactive effects are positive, which indicates that good governance needs to be enhanced to achieve positive net effects. A policy threshold of institutional governance at which institutional governance completely dampens the unfavourable effect of CO2 emissions on inclusive human development is established. Other policy implications are discussed.

Suggested Citation

  • Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "Governance,CO2 emissions and inclusive human development in Sub-Saharan Africa," Working Papers 25253, University of South Africa, Department of Economics.
    • Handle: RePEc:uza:wpaper:25253
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    5. Omri, Anis & Afi, Hatem, 2020. "How can entrepreneurship and educational capital lead to environmental sustainability?," Structural Change and Economic Dynamics, Elsevier, vol. 54(C), pages 1-10.
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    8. Luo, Chunyang & Yang, Fucheng & Pan, Lu, 2024. "Exploring the nexus between natural resources, environmental pollution, external conflicts, financial stability and human development: Evidence from OECD nations," Resources Policy, Elsevier, vol. 88(C).

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    Keywords

    CO2 emissions; Economic development; Africa;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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