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Evaluating Environmental Sustainability in Africa: The Role of Environmental Taxes, Productive Capacities, and Urbanization Dynamics

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  • Adel Ben Youssef

    (Groupe de Recherche en Droit, Economie, Gestion (GREDEG), Centre National de la Recherche Scientifique (CNRS), Côte d’Azur University, 06000 Nice, France)

  • Mounir Dahmani

    (Department of Economics, Higher Institute of Business Administration, University of Gafsa, Gafsa 2112, Tunisia)

Abstract

This study examines the complex relation among environmental taxes, productive capacities, urbanization, and their collective effects on environmental quality in Africa, drawing on two decades of data from twenty African countries. It situates the study within the broader discourse on sustainable development and economic growth, emphasizing the Environmental Kuznets Curve (EKC) framework to examine the relationship between economic development, characterized by urban expansion and increased productive capacities, and the adoption of environmental taxes amidst the continent’s diverse economic and environmental environments. Using advanced econometric techniques, including the Cross-Section Augmented Autoregressive Distributed Lag (CS-ARDL) model and the Dynamic Common Correlated Effects Mean Group (DCCEMG) estimator, the study addresses data challenges such as cross-sectional dependence and slope heterogeneity. The results provide important insights into the dynamics of environmental quality in relation to economic and urban growth and the role of environmental taxation. The study proposes tailored policy strategies aimed at strengthening sustainable development initiatives in line with international agreements such as the Paris Agreement and the Sustainable Development Goals. These strategies advocate for a nuanced application of environmental taxes and the promotion of productive capacities to enhance environmental sustainability across the African continent.

Suggested Citation

  • Adel Ben Youssef & Mounir Dahmani, 2024. "Evaluating Environmental Sustainability in Africa: The Role of Environmental Taxes, Productive Capacities, and Urbanization Dynamics," Economies, MDPI, vol. 12(4), pages 1-24, March.
    • Handle: RePEc:gam:jecomi:v:12:y:2024:i:4:p:80-:d:1366832
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    1. Sanderson Abel & Julius Mukarati & Leward Jeke & Pierre Le Roux, 2023. "Carbon Tax and Environmental Quality in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(2), pages 484-488, March.
    2. Yasser A. AL-Rawi & Yusri Yusup & Essa Ahmed & Ali F. Ali & Sofri Bin Yahya, 2023. "An examination of environmental taxes from the Islamic and Shariah perspectives," Journal of Environmental Studies and Sciences, Springer;Association of Environmental Studies and Sciences, vol. 13(1), pages 141-155, March.
    3. Beebeejaun Ambareen, 2023. "A critical analysis of environmental taxes in Mauritius; A comparative study with South Africa," Development Southern Africa, Taylor & Francis Journals, vol. 40(5), pages 1038-1052, September.
    4. M. Hashem Pesaran, 2006. "Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure," Econometrica, Econometric Society, vol. 74(4), pages 967-1012, July.
    5. Andreoni, James & Levinson, Arik, 2001. "The simple analytics of the environmental Kuznets curve," Journal of Public Economics, Elsevier, vol. 80(2), pages 269-286, May.
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