Economic development thresholds for a green economy in sub-Saharan Africa
Author(s) -
Asongu Simplice A,
Odhiambo Nicholas M
Publication year - 2020
Publication title -
energy exploration and exploitation
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.435
H-Index - 30
eISSN - 2048-4054
pISSN - 0144-5987
DOI - 10.1177/0144598719835591
Subject(s) - kuznets curve , economics , gross domestic product , green economy , human development index , population , index (typography) , real gross domestic product , inequality , economy , population growth , development economics , human development (humanity) , economic growth , macroeconomics , sustainable development , political science , demography , mathematical analysis , mathematics , sociology , world wide web , computer science , law
This study investigates how increasing economic development affects the green economy in terms of CO 2 emissions, using data from 44 countries in the sub-Saharan Africa for the period 2000–2012. The Generalized Method of Moments is used for the empirical analysis. The following main findings are established. First, relative to CO 2 emissions, enhancing economic growth and population growth engenders a U-shaped pattern whereas increasing inclusive human development shows a Kuznets curve. Second, increasing gross domestic product 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 CO 2 emissions. Fourth, an inequality-adjusted human development index of above 0.4969 is beneficial for a green economy because it is associated with a reduction in CO 2 emissions. The established critical masses have policy relevance because they are situated within the policy ranges of adopted economic development dynamics.
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