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Income Heterogeneity and the Environmental Kuznets Curve Turning Points: Evidence from Africa

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  • Mark Awe Tachega

    (College of Economics and Management, Taiyuan University of Technology, Taiyuan 030024, China)

  • Xilong Yao

    (College of Economics and Management, Taiyuan University of Technology, Taiyuan 030024, China)

  • Yang Liu

    (African Development Bank, Abidjan 01, Côte d’Ivoire)

  • Dulal Ahmed

    (College of Economics and Management, Taiyuan University of Technology, Taiyuan 030024, China)

  • Wilhermina Ackaah

    (College of Economics and Management, Taiyuan University of Technology, Taiyuan 030024, China)

  • Mohamed Gabir

    (College of Economics and Management, Taiyuan University of Technology, Taiyuan 030024, China)

  • Justice Gyimah

    (College of Economics and Management, Taiyuan University of Technology, Taiyuan 030024, China)

Abstract

The concept of environmental sustainability aims to achieve economic development while achieving a sustainable environment. The inverted U-shape relationship between economic growth and environmental quality, also called Environmental Kuznets Curve (EKC), describes the correlation between economic growth and carbon emissions. This study assesses the role of agriculture and energy-related variables while evaluating the EKC threshold in 54 African economies, and income groups, according to World Bank categorization, including low income, lower-middle, upper-middle, and high-income in Africa. With 1990–2015 panel data, the results are estimated using panel cointegration, Fully Modified Ordinary Least Square (FMOLS), and granger causality tests. The results are: (1) The study validated the EKC hypothesis in the low-income, lower-, and upper-middle-income economies. However, there is no evidence of EKC in the full African and high-income panels. Furthermore, the turning points of EKC in the income group are meagerly low, showing that Africa could be turning on EKC at lower income levels. (2) The correlation between agriculture with CO 2 is found positive in the high-income economy. However, agriculture has a mitigation effect on emissions in the lower-middle-income and low-income economies, and the full sample. Also, renewable energy is negatively correlated with emissions in Africa and the high-income economy. In contrast, non-renewable energy exerts a positive effect on emissions in all income groups except the low-income economies.

Suggested Citation

  • Mark Awe Tachega & Xilong Yao & Yang Liu & Dulal Ahmed & Wilhermina Ackaah & Mohamed Gabir & Justice Gyimah, 2021. "Income Heterogeneity and the Environmental Kuznets Curve Turning Points: Evidence from Africa," Sustainability, MDPI, vol. 13(10), pages 1-22, May.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:10:p:5634-:d:556791
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    References listed on IDEAS

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    2. Ekundayo P. Mesagan & Titilope C. Adewuyi & Olugbenga Olaoye, 2022. "Corporate Finance, Industrial Performance and Environment in Africa: Lessons for Policy," Working Papers 22/026, European Xtramile Centre of African Studies (EXCAS).
    3. Elisabete Nogueira & Sofia Gomes & João M. Lopes, 2022. "The Key to Sustainable Economic Development: A Triple Bottom Line Approach," Resources, MDPI, vol. 11(5), pages 1-18, May.
    4. Justice Gyimah & Ujunwa Angela Nwigwe & Erica Odwira Opoku & Xilong Yao, 2023. "Promoting environmental sustainability in Africa: the position of globalization, renewable energy, and economic growth," SN Business & Economics, Springer, vol. 3(8), pages 1-19, August.
    5. Hyunsoo Kang, 2021. "CO 2 Emissions Embodied in International Trade and Economic Growth: Empirical Evidence for OECD and Non-OECD Countries," Sustainability, MDPI, vol. 13(21), pages 1-20, November.
    6. Irene M. Zarco-Soto & Fco. Javier Zarco-Soto & Pedro J. Zarco-Periñán, 2021. "Influence of Population Income on Energy Consumption and CO 2 Emissions in Buildings of Cities," Sustainability, MDPI, vol. 13(18), pages 1-18, September.

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