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

Author

Listed:
  • Simplice A. Asongu

    (Yaoundé/Cameroon)

  • Nicholas M. Odhiambo

    (Pretoria, South Africa)

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.

Suggested Citation

  • Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Economic Development Thresholds for a Green Economy in Sub-Saharan Africa," Working Papers 19/010, European Xtramile Centre of African Studies (EXCAS).
    • Handle: RePEc:exs:wpaper:19/010
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    Cited by:

    1. Simplice A. Asongu & Nicholas M. Odhiambo, 2020. "The Mobile Phone, Information Sharing, and Financial Sector Development in Africa: a Quantile Regression Approach," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 11(3), pages 1234-1269, September.
    2. Simplice A. Asongu & Chimere O. Iheonu & Kingsley O. Odo, 2019. "The Conditional Relationship between Renewable Energy and Environmental Quality in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 19/074, African Governance and Development Institute..
    3. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Remittances and value added across economic sub-sectors in Sub-Saharan Africa," Quality & Quantity: International Journal of Methodology, Springer, vol. 56(1), pages 23-41, February.
    4. Asongu, Simplice, 2019. "Natural Resource Exports, Foreign Aid and Terrorism," International Journal of Development and Conflict, Gokhale Institute of Politics and Economics, vol. 9(1), pages 74-94.
    5. Simplice A. Asongu, 2020. "Financial Access and Productivity Dynamics in Sub-Saharan Africa," International Journal of Public Administration, Taylor & Francis Journals, vol. 43(12), pages 1029-1041, September.
    6. Simplice A. Asongu & Rexon T. Nting & Evans S. Osabuohien, 2019. "One Bad Turn Deserves Another: How Terrorism Sustains the Addiction to Capital Flight in Africa," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 501-535, September.
    7. Olatunji A. Shobande & Simplice A. Asongu, 2021. "The rise and fall of the energy-carbon Kuznets curve: Evidence from Africa," Working Papers 21/069, European Xtramile Centre of African Studies (EXCAS).
    8. Pedro A. B. Lima & Gessica M. K. Jesus & Camila R. Ortiz & Fernanda C. O. Frascareli & Fernando B. Souza & Enzo B. Mariano, 2021. "Sustainable Development as Freedom: Trends and Opportunities for the Circular Economy in the Human Development Literature," Sustainability, MDPI, vol. 13(23), pages 1-26, December.

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    More about this item

    Keywords

    CO2 emissions; Economic development; Africa;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • P37 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

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