Income Heterogeneity and Environmental Kuznets Curve in Africa

Adeyemi Ogundipe, Philip Alege and Oluwatomisin Ogundipe

MPRA Paper from University Library of Munich, Germany

Abstract: The Environmental Kuznets Curve (EKC) hypothesis asserts that pollution levels rises as a country develops, but reaches a certain threshold where pollution begins to fall with increasing income. In EKC analysis, the relationship between environmental degradation and income is usually expressed as a quadratic function with turning point occurring at a maximum pollution level. The study seeks to examine the pattern and nature of EKC in Africa and major income groups according to World Bank classification comprising low income, lower middle income and upper middle income in Africa. In ensuring the robustness of our study; the paper proceeded by ascertaining the nature of EKC in all fifty-three countries of Africa in order to confirm the results obtained from basic and augmented EKC model. The study could not validate EKC hypothesis in Africa (combined), low income and upper middle income but empirical and analytical evidences supports the existence of EKC in lower middle income countries. Likewise, evidences from the robustness checks confirmed the findings from the basic and augmented EKC model. The study could not attain a reasonable turning point as there are evidences that Africa could be turning on the EKC at lower levels of income. Also, there is need to strengthen institutions in order to enforce policies that prohibits environmental pollution and ensure pro-poor development.

Keywords: Pollution; Income; Environmental Kuznets Curve; Africa (search for similar items in EconPapers)
JEL-codes: N17 Q1 Q4 Q5 (search for similar items in EconPapers)
Date: 2014-05-03
New Economics Papers: this item is included in nep-afr, nep-agr, nep-ene, nep-env and nep-gro
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (12)

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