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Environmental sustainability risk, institutional effectiveness and urbanization

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  • Rexford Abaidoo
  • Elvis Kwame Agyapong

Abstract

This study examines the effect of urbanization, institutional quality and other variables on environmental sustainability risk among economies in Sub-Saharan Africa (SSA). Environmental sustainability risk is examined from three main perspectives – emission of gases inimical to the environment (CO 2 emissions), exploitation of land and water resources (ecological footprint) and exploitation of resources devoid of the requisite savings and education expenditure (genuine sustainability risk). Empirical analyses were performed using the Limited Information Maximum Likelihood (LIML) Instrumental Variable estimation technique. Estimated results suggest that urbanization, population growth and increase commodity prices on the global market (for key export commodities) worsen CO 2 emissions among economies in the sub-region. The results further suggest that urbanization, population growth, governance and institutional structures increase resource exploitation. Additional results suggest that institutional quality lessens adverse effect urbanization has on environmental sustainability risk (CO 2 emissions) and genuine sustainability risk; but exacerbates the impact urbanization has on ecological footprint. Given these findings, this study recommends conscious efforts at improving governance and institutional structures among governments in the sub-region to lessen adverse effect of urbanization and population growth on environmental sustainability risk.

Suggested Citation

  • Rexford Abaidoo & Elvis Kwame Agyapong, 2023. "Environmental sustainability risk, institutional effectiveness and urbanization," Energy & Environment, , vol. 34(8), pages 3055-3079, December.
    • Handle: RePEc:sae:engenv:v:34:y:2023:i:8:p:3055-3079
    DOI: 10.1177/0958305X221118876
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    1. Jianji An & Qiangjun Su & Xuefeng Yuan, 2025. "The Impact of New Urbanization on Urban Land Green Use Efficiency in the Middle and Lower Yellow River, China: An Analysis Based on Spatial Correlation Networks," Land, MDPI, vol. 14(3), pages 1-20, March.
    2. repec:bcp:journl:v:9:y:2025:i:10:p:4705-4718 is not listed on IDEAS
    3. Baudino, Marco & Gupta, Supratim Das, 2025. "Unraveling nonlinear dynamics between urbanization, growth, and emissions in emerging and developing economies," Economic Modelling, Elsevier, vol. 151(C).

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