Economic Development Thresholds for a Green Economy in Sub-Saharan Africa
Energy Exploration & Exploitation, 38(1), pp. 3-17 (2020).
19 Pages Posted: 1 Mar 2019 Last revised: 20 Dec 2019
Date Written: January 1, 2019
This study investigates how increasing economic development affects the green economy in terms of CO2 emissions, using data from 44 countries in the SSA for the period 2000-2012. The Generalised Method of Moments (GMM) is used for the empirical analysis. The following main findings are established. First, relative to CO2 emissions, enhancing economic growth and population growth engenders a U-shaped pattern whereas increasing inclusive human development shows a Kuznets curve. Second, increasing GDP growth beyond 25% of annual growth is unfavorable for a green economy. Third, a population growth rate of above 3.089% (i.e. annual %) has a positive effect of CO2 emissions. Fourth, an inequality-adjusted human development index (IHDI) of above 0.4969 is beneficial for a green economy because it is associated with a reduction in CO2 emissions. The established critical masses have policy relevance because they are situated within the policy ranges of adopted economic development dynamics.
Keywords: CO2 Emissions; Economic Development; Africa
JEL Classification: C52; O38; O40; O55; P37
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