Economic Development Thresholds for a Green Economy in Sub-Saharan Africa

Simplice Asongu and Nicholas Odhiambo

No 19/010, Working Papers of the African Governance and Development Institute. from African Governance and Development Institute.

Abstract: 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 (search for similar items in EconPapers)
JEL-codes: C52 O38 O40 O55 P37 (search for similar items in EconPapers)
Pages: 19
Date: 2019-01
New Economics Papers: this item is included in nep-env and nep-gro
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Citations: View citations in EconPapers (21)

Forthcoming: Energy Exploration & Exploitation

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http://www.afridev.org/RePEc/agd/agd-wpaper/Econom ... b-Saharan-Africa.pdf Revised version, 2019 (application/pdf)

Related works:
Working Paper: Economic Development Thresholds for a Green Economy in Sub-Saharan Africa (2019)
Working Paper: Economic Development Thresholds for a Green Economy in Sub-Saharan Africa (2019)
Working Paper: Economic Development Thresholds for a Green Economy in Sub-Saharan Africa (2019)
Working Paper: Economic Development Thresholds for a Green Economy in Sub-Saharan Africa (2019)
Working Paper: Economic development thresholds for a green economy in Sub-Saharan Africa (2019)
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