Carbon Emissions and Growth: The Role of Trade and Urbanization in Sub-Saharan Africa

Zwakele Dlamini, Ntokozo Nzimande, Mduduzi Biyase, Hlalefang Khobai, Mathias Manguzvane and Sanele Gumede
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Zwakele Dlamini: School of Economics, University of Johannesburg, South Africa
Mduduzi Biyase: School of Economics, University of Johannesburg, South Africa; & Department of Media Management, University of Religions and Denominations, Qom, Iran
Hlalefang Khobai: School of Economics, University of Johannesburg, South Africa
Mathias Manguzvane: School of Economics, University of Johannesburg, South Africa
Sanele Gumede: School of Economics, University of KwaZulu-Natal South Africa

International Journal of Energy Economics and Policy, 2024, vol. 14, issue 5, 605-614

Abstract: In this study, we employed a system generalised method of moments (GMM) to investigate the effect of trade, urbanization, and income on the environmental quality in a panel of 48 Sub-Saharan African countries, covering the period 1990-2018. Our findings demonstrated that urbanization does not have significant explanatory power over carbon emissions, whereas, trade positively and significantly drives emissions. Our findings further exhibit an inverted U-shape relationship between income and carbon dioxide emissions. This substantiates the existence of an Environmental Kuznets Curve (EKC) in Sub-Saharan Africa. It is therefore concluded that policymakers can focus on growth-promoting policies and should not adopt stringent conservative policies, which may hurt growth and delay the process of reaching a turning point in the Kuznets curve.

Keywords: Trade; Emissions; Growth; Urbanization; Environmental Kuznets Curve (search for similar items in EconPapers)
JEL-codes: C13 C23 Q43 Q56 (search for similar items in EconPapers)
Date: 2024
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