Trade and Environmental Quality in African Countries: Do Institutions Matter?
AbstractThis paper examines the impact of trade and political institutions on environmental quality in Africa and explores whether political institutions matter to the trade-environment relationship. We use data from a large group of African countries, covering the period 1990-2008 and two indicators of environmental quality: net forest depletion and CO2 emissions. The results from GMM-SYS estimates suggest that political institutions influence the relationship between trade and environmental quality only in the case of CO2 emissions. Interestingly, we find that polity has a U relationship with net forest depletion. In addition, the results are in favor of an environmental Kuznets curve in the case of pollution (CO2 emissions) but not in the case of net forest depletion (deforestation). We discuss the policy implications of these findings.
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Bibliographic InfoPaper provided by ICER - International Centre for Economic Research in its series ICER Working Papers with number 14-2012.
Length: 21 pages
Date of creation: Oct 2012
Date of revision:
Africa; environmental quality; deforestation; CO2 emissions; trade; political institutions;
Find related papers by JEL classification:
- F18 - International Economics - - Trade - - - Trade and Environment
- O13 - Economic Development, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
- P48 - Economic Systems - - Other Economic Systems - - - Political Economy; Legal Institutions; Property Rights; Natural Resources; Energy; Environment; Regional Studies
- 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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