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The environmental effects of economic growth and globalization in Sub-Saharan Africa: A panel general method of moments approach

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  • Kwabena Twerefou, Daniel
  • Danso-Mensah, Kwadwo
  • Bokpin, Godfred A.

Abstract

The study examines the impact of economic growth and globalization on environmental quality and sustainability proxied by carbon dioxide emissions and Adjusted National Savings respectively as well as the satisfaction of the Environmental Kuznets Curve hypothesis for 36 Sub-Saharan African countries using panel data for the period 1990 to 2013 and the system General Method of Moments estimation technique. The results reveal a positive relationship between economic growth and environmental quality and sustainability. Evidence of the satisfaction of the Environmental Kuznets Curve hypothesis for both environmental quality and sustainability was also observed. Globalization was found to have a worsening effect on both environmental quality and sustainability and its negative effect outweighs the positive income effects on environmental quality and sustainability. We recommend that Sub-Saharan African countries strengthen their environmental norms in their effort to increase growth and participate in globalization through the use of cleaner technologies and products as well as reducing the depreciation of natural and fixed capital through investments in green infrastructure and nature-based projects while increasing educational expenditure and combating the ecological crises that arise from environmental quality degradation.

Suggested Citation

  • Kwabena Twerefou, Daniel & Danso-Mensah, Kwadwo & Bokpin, Godfred A., 2017. "The environmental effects of economic growth and globalization in Sub-Saharan Africa: A panel general method of moments approach," Research in International Business and Finance, Elsevier, vol. 42(C), pages 939-949.
    • Handle: RePEc:eee:riibaf:v:42:y:2017:i:c:p:939-949
    DOI: 10.1016/j.ribaf.2017.07.028
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    More about this item

    Keywords

    Economic growth; CO2 emissions; Globalization; Environmental Kuznets Curve; GMM; Ghana;
    All these keywords.

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics

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