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Examining the Interaction Effect of Control of Corruption and Income Level on Environmental Quality in Africa

Author

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  • Ojonugwa Usman

    (Department of Economics, Istanbul Ticaret University, Istanbul 34445, Turkey)

  • Paul Terhemba Iorember

    (Department of Economics, Nile University of Nigeria, Abuja 900001, Nigeria)

  • Ilhan Ozturk

    (College of Business Administration, University of Sharjah, Sharjah 27272, United Arab Emirates
    Faculty of Economics, Administrative and Social Sciences, Nisantasi University, Istanbul 25370, Turkey
    Department of Medical Research, China Medical University Hospital, China Medical University, Taichung 40402, Taiwan)

  • Festus Victor Bekun

    (Faculty of Economics Administrative and Social Sciences, Istanbul Gelisim University, Istanbul 34310, Turkey
    Department of Economics, Adnan Kassar School of Business, Lebanese American University, Beirut 11022801, Lebanon)

Abstract

The effects of corruption and income on environmental degradation is well established in the literature. However, little attention has been given to how the control of corruption affects the environmental quality at different levels of income. This study examines the interaction effect of the control of corruption and income on environmental quality in Africa over the period from 1996 to 2017. Using a Method of Moments Quantile Regression (MMQR) with fixed effects, the results revealed that both the control of corruption and income level increase CO 2 emissions while their interaction term reduces CO 2 emissions. This implies that the interaction effect of the control of corruption and income level mitigates carbon emissions. Particularly, the marginal effect of the control of corruption on CO 2 emissions decreases as income level increases. Furthermore, renewable energy consumption has a negative and significant effect on CO 2 emissions. The effect of foreign direct investment on CO 2 emissions is positive and significant, which validates the pollution haven hypothesis. These results are heterogeneous across the quantile distribution of CO 2 emissions. Based on these findings, our study suggests the need for the government and policymakers to stimulate income levels as a prerequisite for achieving sound and effective environmental policies in Africa.

Suggested Citation

  • Ojonugwa Usman & Paul Terhemba Iorember & Ilhan Ozturk & Festus Victor Bekun, 2022. "Examining the Interaction Effect of Control of Corruption and Income Level on Environmental Quality in Africa," Sustainability, MDPI, vol. 14(18), pages 1-15, September.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:18:p:11391-:d:912062
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    Cited by:

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    2. Nuno Carlos Leitão & Matheus Koengkan & José Alberto Fuinhas, 2022. "The Role of Intra-Industry Trade, Foreign Direct Investment, and Renewable Energy on Portuguese Carbon Dioxide Emissions," Sustainability, MDPI, vol. 14(22), pages 1-21, November.
    3. Yi Wang & Valentin Marian Antohi & Costinela Fortea & Monica Laura Zlati & Reda Abdelfattah Mohammad & Farah Yasin Farah Abdelkhair & Waqar Ahmad, 2024. "Shadow Economy and Environmental Sustainability in Global Developing Countries: Do Governance Indicators Play a Role?," Sustainability, MDPI, vol. 16(22), pages 1-23, November.
    4. Paul Terhemba Iorember & Solomon Gbaka & Abdurrahman Işık & Chinazaekpere Nwani & Jaffar Abbas, 2024. "New insight into decoupling carbon emissions from economic growth: Do financialization, human capital, and energy security risk matter?," Review of Development Economics, Wiley Blackwell, vol. 28(3), pages 827-850, August.
    5. Paul Terhemba Iorember & Nora Yusma Mohamed Yusoff, 2023. "Income–environmental nexus in Africa: The integrating role of renewable energy transition and governance quality," African Development Review, African Development Bank, vol. 35(4), pages 376-389, December.
    6. Syed Mithun Ali & Andrea Appolloni & Fausto Cavallaro & Idiano D’Adamo & Assunta Di Vaio & Francesco Ferella & Massimo Gastaldi & Muhammad Ikram & Nallapaneni Manoj Kumar & Michael Alan Martin & Abdul, 2023. "Development Goals towards Sustainability," Sustainability, MDPI, vol. 15(12), pages 1-11, June.
    7. Suisui Chen & Xintian Liu & Shuhong Wang & Peng Wang, 2023. "Regional Corruption, Foreign Trade, and Environmental Pollution," Sustainability, MDPI, vol. 15(1), pages 1-17, January.

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