Governance, CO2 Emissions and Inclusive Human Development in Sub-Saharan Africa
Energy Exploration & Exploitation, 38(1), pp. 18–36 (2020).
26 Pages Posted: 28 Feb 2019 Last revised: 20 Dec 2019
Date Written: February 12, 2019
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.
Keywords: CO2 emissions; Economic development; Africa
JEL Classification: C52; O38; O40; O55; P37
Suggested Citation: Suggested Citation