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

Author

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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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    References listed on IDEAS

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    5. Tore Bersvendsen & Jan Ditzen, 2021. "Testing for slope heterogeneity in Stata," Stata Journal, StataCorp LLC, vol. 21(1), pages 51-80, March.
    6. Mounir Dahmani & Mohamed Mabrouki & Adel Ben Youssef, 2023. "The ICT, financial development, energy consumption and economic growth nexus in MENA countries: dynamic panel CS-ARDL evidence," Applied Economics, Taylor & Francis Journals, vol. 55(10), pages 1114-1128, February.
    7. 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.
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    9. Samuel Adams & Hervé Kaffo Fotio, 2024. "Economic integration and environmental quality: accounting for the roles of financial development, industrialization, urbanization and renewable energy," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 67(3), pages 688-713, February.
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    Cited by:

    1. Amayed, Yasser, 2025. "Digitalisation, fiscalité verte et capacités énergétiques : une analyse de la Qualité Environnementale en Afrique du nord à l’aide de l’approche CS-ARDL [Digitalization, green taxation and energy capacities: an analysis of Environmental Quality in," MPRA Paper 124127, University Library of Munich, Germany.
    2. Yan Gu & Junfei Chen & Wenjia Xi & Ibrahim Lanre Ridwan & Mamdouh Abdulaziz Saleh Al‐Faryan, 2026. "Toward environmental sustainability: Is responsible consumption and production of natural resources amid green energy, green technology, and green finance achievable?," Natural Resources Forum, Blackwell Publishing, vol. 50(1), pages 542-566, February.
    3. Amayed, Yassr, 2025. "Digitalisation, transition énergétique et croissance économique en Afrique du nord : une analyse Dynamique à l’Aide du modèle CS-ARDL [Digitalization, energy transition and economic growth in north africa: a dynamic analysis using the CS-ARDL mode," MPRA Paper 124124, University Library of Munich, Germany.
    4. Adel Ben Youssef & Mounir Dahmani & Mohamed Mabrouki, 2024. "Decoupling carbon emissions and economic growth in Tunisia: pathways to sustainable development," Chapters, in: Mohamed Arouri & Mathieu Gomes (ed.), Handbook on Energy and Economic Growth, chapter 5, pages 103-127, Edward Elgar Publishing.

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