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Effects of Infrastructures on Environmental Quality Contingent on Trade Openness and Governance Dynamics in Africa

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  • Tii N. Nchofoung

    (University of Dschang, Cameroon)

  • Simplice A. Asongu

    (Yaoundé, Cameroon)

Abstract

The objective of this study is to evaluate: (i) the effects of infrastructures on CO2 emission and (ii) how trade openness and governance contribute to mitigating these effects. The results from the system GMM methodology for 36 African countries between the 2003-2019 period show that infrastructural development exacerbates CO2 emission in Africa. This result is robust across different types of infrastructural development indexes. When the indirect effect regressions are carried out by interacting governance and trade openness with the different infrastructural development variables, the following results are obtained. Firstly, infrastructural development interacts with governance producing a positive net effect, up to a governance threshold estimate of 0.532 when the positive net effect is nullified. Secondly, infrastructures interact with trade openness producing a negative net effect up to a trade openness threshold of 78.066914 (% of GDP) when the negative net effect is nullified. Positive and negative synergy effects are also apparent. Practical policy implications are discussed based on the results obtained.

Suggested Citation

  • Tii N. Nchofoung & Simplice A. Asongu, 2021. "Effects of Infrastructures on Environmental Quality Contingent on Trade Openness and Governance Dynamics in Africa," Research Africa Network Working Papers 21/062, Research Africa Network (RAN).
    • Handle: RePEc:abh:wpaper:21/062
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    2. Isaac K. Ofori & Francesco Figari & Nathanael Ojong, 2023. "Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth," Working Papers of the African Governance and Development Institute. 23/023, African Governance and Development Institute..
    3. Fotio, Herve Kaffo & Nchofoung, Tii N. & Asongu, Simplice A., 2022. "Financing renewable energy generation in SSA: Does financial integration matter?," Renewable Energy, Elsevier, vol. 201(P2), pages 47-59.
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    6. Njamen Kengdo Arsène Aurelien & Nchofoung Tii N. & Kos A Mougnol Alice, 2023. "Determinants of Military Spending in Africa: Do Institutions Matter?," Peace Economics, Peace Science, and Public Policy, De Gruyter, vol. 29(4), pages 401-440, December.
    7. Lee, Chien-Chiang & Tang, Manting & Lee, Chi-Chuan, 2023. "Reaping digital dividends: Digital inclusive finance and high-quality development of enterprises in China," Telecommunications Policy, Elsevier, vol. 47(2).
    8. Kouladoum, Jean-Claude & Wirajing, Muhamadu Awal Kindzeka & Nchofoung, Tii N., 2022. "Digital technologies and financial inclusion in Sub-Saharan Africa," Telecommunications Policy, Elsevier, vol. 46(9).
    9. Ofori, Isaac K. & Figari, Francesco & Ojong, Nathanael, 2023. "Towards sustainability: The relationship between foreign direct investment, economic freedom and inclusive green growth," MPRA Paper 116956, University Library of Munich, Germany.
    10. Simplice A. Asongu & Sara le Roux, 2024. "Governance, debt service, information technology and access to electricity in Africa," Working Papers of the African Governance and Development Institute. 24/003, African Governance and Development Institute..
    11. Slimani, Sana & Omri, Anis & Abbassi, Abdessalem, 2024. "International capital flows and sustainable development goals: The role of governance and ICT diffusion," Socio-Economic Planning Sciences, Elsevier, vol. 93(C).
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    14. Asongu, Simplice A. & le Roux, Sara, 2023. "The role of mobile money innovations in transforming unemployed women to self-employed women in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 191(C).
    15. Chien, FengSheng & Paramaiah, Ch & joseph, Robinson & Pham, Hong Chuong & Phan, Thi Thu Hien & Ngo, Thanh Quang, 2023. "The impact of eco-innovation, trade openness, financial development, green energy and government governance on sustainable development in ASEAN countries," Renewable Energy, Elsevier, vol. 211(C), pages 259-268.
    16. Tii N. Nchofoung & Simplice A. Asongu & Vanessa S. Tchamyou, 2022. "Tourism, ICT and inclusive development: global evidence," Working Papers of the African Governance and Development Institute. 22/037, African Governance and Development Institute..
    17. Ofori, Isaac K. & Figari, Francesco, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," MPRA Paper 114377, University Library of Munich, Germany.
    18. Simplice A. Asongu & Nicholas M. Odhiambo, 2022. "Information Technology and Sustainability in Developing Countries: An Introduction," Working Papers of the African Governance and Development Institute. 22/028, African Governance and Development Institute..
    19. Jean-Claude Kouladoum, 2023. "Inclusive Education and Health Performance in Sub Saharan Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 165(3), pages 879-900, February.
    20. Isaac K. Ofori & Francesco Figari, 2023. "Economic globalisation and inclusive green growth in Africa: Contingencies and policy‐relevant thresholds of governance," Sustainable Development, John Wiley & Sons, Ltd., vol. 31(1), pages 452-482, February.
    21. Isaac K. Ofori & Francesco Figari, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," Working Papers 22/053, European Xtramile Centre of African Studies (EXCAS).
    22. Guivis Zeufack Nkemgha & Tii N. Nchofoung & Fabien Sundjo, 2022. "Financial development and human capital thresholds for the infrastructure development-industrialization nexus in Africa," Working Papers 22/091, European Xtramile Centre of African Studies (EXCAS).
    23. Asiamah, Oliver & Agyei, Samuel Kwaku & Bossman, Ahmed & Agyei, Ellen Animah & Asucam, Joseph & Arku-Asare, Michael, 2022. "Natural resource dependence and institutional quality: Evidence from Sub-Saharan Africa," Resources Policy, Elsevier, vol. 79(C).
    24. Isaac K. Ofori & Francesco Figari, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," Working Papers of the African Governance and Development Institute. 22/053, African Governance and Development Institute..
    25. Ofori, Isaac K. & Figari, Francesco, 2022. "Economic Globalisation and Inclusive Green Growth in Africa: Contingencies and Policy-Relevant Thresholds of Governance," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, issue Forthcomi, pages 1-1.

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    More about this item

    Keywords

    Infrastructures; CO2; trade openness; governance; Africa; System GMM;
    All these keywords.

    JEL classification:

    • N67 - Economic History - - Manufacturing and Construction - - - Africa; Oceania
    • N77 - Economic History - - Economic History: Transport, International and Domestic Trade, Energy, and Other Services - - - Africa; Oceania
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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