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

Simplice Asongu and Nicholas Odhiambo

MPRA Paper from University Library of Munich, Germany

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)
Date: 2020-01
New Economics Papers: this item is included in nep-env and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

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