Assessing Socio-Political Risk on Climate Change-Induced Vulnerability in Sub-Saharan Africa: Does Tax Policy Matter?

Godfred Amewu (), Sandra Twumaa Larbi () and Teddy Ossei Kwakye ()
Additional contact information
Godfred Amewu: University of Ghana Business School, Department of Finance
Sandra Twumaa Larbi: University of Ghana Business School, Department of Accounting
Teddy Ossei Kwakye: University of Ghana Business School, Department of Accounting

A chapter in Climate Change in Africa, 2026, pp 35-61 from Springer

Abstract: Abstract This chapter analyzes the intersection of tax policy, socio-political risk, and climate change vulnerability in Africa, contributing to the thin but growing literature on fiscal capacity and climate resilience. Using a 24-country African panel dataset covering the period 2010–2022, the study employs a dynamic panel model to examine the extent to which socio-political risk explains the effect of tax variables on climate exposure. The results show that while tax policy and tax structure have strong associations with increased vulnerability, resource rents are inversely related, suggesting a potential insurance fiscal role when managed appropriately. Interaction effects are notably found to indicate that socio-political risk has a significant moderating impact in these relationships. Specifically, the connection between tax policy and socio-political risk yields a negative and statistically significant coefficient, such that the effectiveness of tax policy in reducing climate vulnerability rises in politically stable conditions. In contrast, the relationship between tax structure and socio-political risk yields a positive and significant impact on climate vulnerability, such that poor socio-political conditions can intensify the negative effects of regressive tax structures. These findings underscore the centrality of institutional quality in mobilizing tax policy to climate adaptation.

Keywords: Socio-political; Climate change; Vulnerability; Tax policy; Africa (search for similar items in EconPapers)
Date: 2026
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-032-15259-6_3

Ordering information: This item can be ordered from
http://www.springer.com/9783032152596

DOI: 10.1007/978-3-032-15259-6_3

Access Statistics for this chapter

More chapters in Advances in African Economic, Social and Political Development from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().