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The role of Globalization in Modulating the Effect of Environmental Degradation on Inclusive Human Development

Simplice Asongu () and Nicholas Odhiambo ()

No 20/015, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: This study assesses how globalisation modulates the effect of environmental degradation on inclusive human development in 44 countries in Sub-Saharan Africa (SSA), using data for the period 2000 to 2012. The empirical results are based on the Generalized Method of Moments (GMM). The following main findings are established. First, a trade openness (imports + exports) threshold of between 80-120% of GDP is the maximum level required for trade openness to effectively modulate CO2 emissions (metric tonnes per capita) and induce a positive effect on inclusive human development. Second, a minimum threshold required for trade openness to modulate CO2 intensity (kg per kg of oil-equivalent energy use) and induce a positive effect on inclusive human development is 200% of GDP. Third, there is a net positive effect on inclusive human development from the relevance of trade openness in modulating the effect of CO2 emissions per capita on inclusive human development and a negative net effect on inclusive human development from the importance of trade openness in moderating the effect of CO2 intensity on inclusive human development.

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: 30
Date: 2020-01
New Economics Papers: this item is included in nep-ene and nep-env
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Forthcoming in Innovation: The European Journal of Social Science Research

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http://publications.excas.org/RePEc/exs/exs-wpaper ... he-Effect-of-CO2.pdf Revised version, 2020 (application/pdf)

Related works:
Working Paper: The role of Globalization in Modulating the Effect of Environmental Degradation on Inclusive Human Development (2020) Downloads
Working Paper: The role of Globalization in Modulating the Effect of Environmental Degradation on Inclusive Human Development (2020) Downloads
Working Paper: The role of globalization in modulating the effect of enviromental degradation on inclusive human development (2020) Downloads
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