Taxation and Climate Change-Induced Vulnerability in Africa: Does Globalization Matter?

Osman Babamu Halidu (), Nicholas Asare (), Edward Asiedu (), Abdallah Ali-Nakyea () and Mohammed Amidu
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Osman Babamu Halidu: University of Ghana Business School
Nicholas Asare: University of Ghana Business School
Edward Asiedu: University of Ghana Business School
Abdallah Ali-Nakyea: University of Ghana Business School

A chapter in Climate Change in Africa, 2026, pp 209-239 from Springer

Abstract: Abstract This chapter explores the interplay between environmental taxation and climate change vulnerabilities across African countries, examining the influence of globalization. Utilizing panel data from 21 African countries (1994–2020), this study employs the Method of Moments Quantile Regression and three Instrumental Variable Regression analyses to assess the effects of environmental taxation and globalization on climate change vulnerability. The findings reveal that environmental taxation significantly increases Africa’s climate change vulnerability, likely due to implementation challenges and the economic burdens that strain fragile economies. Conversely, globalization significantly reduces climate change vulnerability by facilitating technology transfer, international cooperation, and economic diversification, thereby enhancing adaptive capacities. Notably, the joint effect of environmental taxation and globalization significantly reduces climate vulnerability, suggesting that globalization can mitigate the adverse effects of environmental taxation. The study concludes with policy recommendations tailored to African contexts, emphasizing the need for coordinated environmental taxation policies and strategies to harness globalization’s benefits. This research contributes to the broader discourse on sustainable development in Africa.

Keywords: Taxation; Climate change-induced vulnerability; Globalization; Instrumental variable generalized method of moments; Africa (search for similar items in EconPapers)
Date: 2026
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Persistent link: https://EconPapers.repec.org/RePEc:spr:aaechp:978-3-032-15259-6_9

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DOI: 10.1007/978-3-032-15259-6_9

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