IDEAS home Printed from https://ideas.repec.org/p/agd/wpaper/17-038.html
   My bibliography  Save this paper

Environmental Degradation, ICT and Inclusive Development in Sub-Saharan Africa

Author

Listed:
  • Simplice Asongu

    (Yaoundé/Cameroun)

  • Sara Le Roux

    (Oxford, UK)

  • Nicholas Biekpe

    (Cape Town, South Africa)

Abstract

This study examines how information and communication technology (ICT) complements carbon dioxide (CO2) emissions to influence inclusive human development in forty-four Sub-Saharan African countries for the period 2000-2012. ICT is measured with internet penetration and mobile phone penetration. The empirical evidence is based on Generalised Method of Moments. The findings broadly show that ICT can be employed to dampen the potentially negative effect of environmental pollution on human development. We establish that: (i) ICT complements CO2 emissions from liquid fuel consumption to increase inclusive development; (ii) ICT interacts with CO2 intensity to negatively affect inclusive human development and (iii) the net effect on inclusive human development is positive from the complementarity between mobile phones and CO2 emissions per capita. Conversely, we also establish evidence of net negative effects. Fortunately, the corresponding ICT thresholds at which these net negative effects can be completely dampened are within policy range, notably: 50 (per 100 people) mobile phone penetration for CO2 emissions from liquid fuel consumption and CO2 intensity. Theoretical and policy implications are discussed.

Suggested Citation

  • Simplice Asongu & Sara Le Roux & Nicholas Biekpe, 2017. "Environmental Degradation, ICT and Inclusive Development in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 17/038, African Governance and Development Institute..
  • Handle: RePEc:agd:wpaper:17/038
    as

    Download full text from publisher

    File URL: http://www.afridev.org/RePEc/agd/agd-wpaper/Environmental-Degradation-ICT-and-Inclusive-development-in-SSA.pdf
    File Function: Revised version, 2017
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Ang, James B., 2007. "CO2 emissions, energy consumption, and output in France," Energy Policy, Elsevier, vol. 35(10), pages 4772-4778, October.
    2. Simplice Asongu & Uchenna Efobi & Ibukun Beecroft, 2015. "Inclusive Human Development in Pre-crisis Times of Globalization-driven Debts," African Development Review, African Development Bank, vol. 27(4), pages 428-442, December.
    3. Ozturk, Ilhan & Acaravci, Ali, 2010. "CO2 emissions, energy consumption and economic growth in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 3220-3225, December.
    4. Simplice Asongu & Jacinta C. Nwachukwu & Vanessa S. Tchamyou, 2015. "Information Asymmetry and Financial Development Dynamics in Africa," Working Papers of the African Governance and Development Institute. 15/025, African Governance and Development Institute..
    5. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The Mobile Phone in the Diffusion of Knowledge for Institutional Quality in Sub-Saharan Africa," World Development, Elsevier, vol. 86(C), pages 133-147.
    6. Hopestone Kayiska Chavula, 2013. "Telecommunications development and economic growth in Africa," Information Technology for Development, Taylor & Francis Journals, vol. 19(1), pages 5-23, January.
    7. Akinlo, A.E., 2008. "Energy consumption and economic growth: Evidence from 11 Sub-Sahara African countries," Energy Economics, Elsevier, vol. 30(5), pages 2391-2400, September.
    8. Vanessa S. Tchamyou & Simplice A. Asongu, 2017. "Information Sharing and Financial Sector Development in Africa," Journal of African Business, Taylor & Francis Journals, vol. 18(1), pages 24-49, January.
    9. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2016. "The role of governance in mobile phones for inclusive human development in Sub-Saharan Africa," Technovation, Elsevier, vol. 55, pages 1-13.
    10. Michael Enowbi Batuo, 2015. "The role of telecommunications infrastructure in the regional economic growth of Africa," Journal of Developing Areas, Tennessee State University, College of Business, vol. 49(1), pages 313-330, January-M.
    11. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    12. Asongu, Simplice & Anyanwu, John & Tchamyou, Vanessa, 2016. "Information sharing and conditional financial development in Africa," MPRA Paper 74653, University Library of Munich, Germany.
    13. Love, Inessa & Zicchino, Lea, 2006. "Financial development and dynamic investment behavior: Evidence from panel VAR," The Quarterly Review of Economics and Finance, Elsevier, vol. 46(2), pages 190-210, May.
    14. Simplice Asongu & Jacinta C. Nwachukwu, 2015. "Finance and Inclusive Human Development: Evidence from Africa," Working Papers of the African Governance and Development Institute. 15/061, African Governance and Development Institute..
    15. Simplice A. Asongu & Ghassen El Montasser & Hassen Toumi, 2015. "Testing the Relationships between Energy Consumption, CO2 emissions and Economic Growth in 24 African Countries: a Panel ARDL Approach," Research Africa Network Working Papers 15/037, Research Africa Network (RAN).
    16. Menyah, Kojo & Wolde-Rufael, Yemane, 2010. "Energy consumption, pollutant emissions and economic growth in South Africa," Energy Economics, Elsevier, vol. 32(6), pages 1374-1382, November.
    17. Petrakis, P. E. & Stamatakis, D., 2002. "Growth and educational levels: a comparative analysis," Economics of Education Review, Elsevier, vol. 21(5), pages 513-521, October.
    18. Simplice A. Asongu, 2013. "How has Mobile Phone Penetration Stimulated Financial Development in Africa?," Journal of African Business, Taylor & Francis Journals, vol. 14(1), pages 7-18, April.
    19. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    20. Montfort Mlachila & René Tapsoba & Sampawende J. A. Tapsoba, 2017. "A Quality of Growth Index for Developing Countries: A Proposal," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(2), pages 675-710, November.
    21. Augustin Kwasi Fosu, 2015. "Growth, Inequality and Poverty in Sub-Saharan Africa: Recent Progress in a Global Context," Oxford Development Studies, Taylor & Francis Journals, vol. 43(1), pages 44-59, March.
    22. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    23. Quamrul Ashraf & Oded Galor, 2013. "The 'Out of Africa' Hypothesis, Human Genetic Diversity, and Comparative Economic Development," American Economic Review, American Economic Association, vol. 103(1), pages 1-46, February.
    24. Apergis, Nicholas & Payne, James E., 2009. "CO2 emissions, energy usage, and output in Central America," Energy Policy, Elsevier, vol. 37(8), pages 3282-3286, August.
    25. Pádraig Carmody, 2013. "A knowledge economy or an information society in Africa? Thintegration and the mobile phone revolution," Information Technology for Development, Taylor & Francis Journals, vol. 19(1), pages 24-39, January.
    26. Odhiambo, Nicholas M., 2009. "Electricity consumption and economic growth in South Africa: A trivariate causality test," Energy Economics, Elsevier, vol. 31(5), pages 635-640, September.
    27. Badi H. Baltagi, 2008. "Forecasting with panel data," Journal of Forecasting, John Wiley & Sons, Ltd., vol. 27(2), pages 153-173.
    28. Simplice A Asongu & Lieven De Moor, 2017. "Financial Globalisation Dynamic Thresholds for Financial Development: Evidence from Africa," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 29(1), pages 192-212, January.
    29. Mehrara, Mohsen, 2007. "Energy consumption and economic growth: The case of oil exporting countries," Energy Policy, Elsevier, vol. 35(5), pages 2939-2945, May.
    30. Simplice Asongu, 2014. "The Questionable Economics of Development Assistance in Africa: Hot-Fresh Evidence, 1996–2010," The Review of Black Political Economy, Springer;National Economic Association, vol. 41(4), pages 455-480, December.
    31. Rahul Anand & Mr. Saurabh Mishra & Mr. Nikola Spatafora, 2012. "Structural Transformation and the sophistication of Production," IMF Working Papers 2012/059, International Monetary Fund.
    32. Sajda Qureshi, 2013. "What is the role of mobile phones in bringing about growth?," Information Technology for Development, Taylor & Francis Journals, vol. 19(1), pages 1-4, January.
    33. Thierry PENARD & Nicolas POUSSING & Gabriel ZOMO YEBE & Philémon NSI ELLA, 2012. "Comparing the Determinants of Internet and Cell Phone Use in Africa: Evidence from Gabon," Communications & Strategies, IDATE, Com&Strat dept., vol. 1(86), pages 65-83, 2nd quart.
    34. Dulani Seneviratne & Ms. Yan M Sun, 2013. "Infrastructure and Income Distribution in ASEAN-5: What are the Links?," IMF Working Papers 2013/041, International Monetary Fund.
    35. Beck, Thorsten & Demirguc-Kunt, Asli & Levine, Ross, 2003. "Law and finance: why does legal origin matter?," Journal of Comparative Economics, Elsevier, vol. 31(4), pages 653-675, December.
    36. Narayan, Paresh Kumar & Mishra, Sagarika & Narayan, Seema, 2011. "Do market capitalization and stocks traded converge? New global evidence," Journal of Banking & Finance, Elsevier, vol. 35(10), pages 2771-2781, October.
    37. Asongu, Simplice A. & Le Roux, Sara, 2017. "Enhancing ICT for inclusive human development in Sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 118(C), pages 44-54.
    38. Godwin Effiong Akpan & Usenobong Friday Akpan, 2012. "Electricity Consumption, Carbon Emissions and Economic Growth in Nigeria," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 292-306.
    39. David Roodman, 2009. "A Note on the Theme of Too Many Instruments," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 71(1), pages 135-158, February.
    40. Chen, Jiandong & Cheng, Shulei & Song, Malin, 2017. "Decomposing inequality in energy-related CO2 emissions by source and source increment: The roles of production and residential consumption," Energy Policy, Elsevier, vol. 107(C), pages 698-710.
    41. Marcantonini, Claudio & Valero, Vanessa, 2017. "Renewable energy and CO2 abatement in Italy," Energy Policy, Elsevier, vol. 106(C), pages 600-613.
    42. He, Jie & Richard, Patrick, 2010. "Environmental Kuznets curve for CO2 in Canada," Ecological Economics, Elsevier, vol. 69(5), pages 1083-1093, March.
    43. John Levendis & Sang H. Lee, 2013. "On the endogeneity of telecommunications and economic growth: evidence from Asia," Information Technology for Development, Taylor & Francis Journals, vol. 19(1), pages 62-85, January.
    44. Elizabeth Asiedu, 2014. "Does Foreign Aid In Education Promote Economic Growth? Evidence From Sub-Saharan Africa," Journal of African Development, African Finance and Economic Association (AFEA), vol. 16(1), pages 37-59.
    45. Esso, Loesse Jacques, 2010. "Threshold cointegration and causality relationship between energy use and growth in seven African countries," Energy Economics, Elsevier, vol. 32(6), pages 1383-1391, November.
    46. AkbostancI, Elif & Türüt-AsIk, Serap & Tunç, G. Ipek, 2009. "The relationship between income and environment in Turkey: Is there an environmental Kuznets curve?," Energy Policy, Elsevier, vol. 37(3), pages 861-867, March.
    47. Odhiambo, Nicholas M., 2009. "Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach," Energy Policy, Elsevier, vol. 37(2), pages 617-622, February.
    48. Sajda Qureshi, 2013. "Networks of change, shifting power from institutions to people: how are innovations in the use of information and communication technology transforming development?," Information Technology for Development, Taylor & Francis Journals, vol. 19(2), pages 97-99, April.
    49. Amavilah, Voxi & Asongu, Simplice A. & Andrés, Antonio R., 2017. "Effects of globalization on peace and stability: Implications for governance and the knowledge economy of African countries," Technological Forecasting and Social Change, Elsevier, vol. 122(C), pages 91-103.
    50. Mishra, Saurabh & Lundstrom, Susanna & Anand, Rahul, 2011. "Service export sophistication and economic growth," Policy Research Working Paper Series 5606, The World Bank.
    51. Begum, Rawshan Ara & Sohag, Kazi & Abdullah, Sharifah Mastura Syed & Jaafar, Mokhtar, 2015. "CO2 emissions, energy consumption, economic and population growth in Malaysia," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 594-601.
    52. van Heek, Julia & Arning, Katrin & Ziefle, Martina, 2017. "Reduce, reuse, recycle: Acceptance of CO2-utilization for plastic products," Energy Policy, Elsevier, vol. 105(C), pages 53-66.
    53. Jumbe, Charles B. L., 2004. "Cointegration and causality between electricity consumption and GDP: empirical evidence from Malawi," Energy Economics, Elsevier, vol. 26(1), pages 61-68, January.
    54. Sajda Qureshi, 2013. "Information and Communication Technologies in the Midst of Global Change: How do we Know When Development Takes Place?," Information Technology for Development, Taylor & Francis Journals, vol. 19(3), pages 189-192, July.
    55. Xu, Xueliu & Mu, Mingjie & Wang, Qian, 2017. "Recalculating CO2 emissions from the perspective of value-added trade: An input-output analysis of China's trade data," Energy Policy, Elsevier, vol. 107(C), pages 158-166.
    56. Martínez, J. & Martí-Herrero, Jaime & Villacís, S. & Riofrio, A.J. & Vaca, D., 2017. "Analysis of energy, CO2 emissions and economy of the technological migration for clean cooking in Ecuador," Energy Policy, Elsevier, vol. 107(C), pages 182-187.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Asongu, Simplice A. & Le Roux, Sara & Biekpe, Nicholas, 2018. "Enhancing ICT for environmental sustainability in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 127(C), pages 209-216.
    2. Simplice A. Asongu, 2017. "ICT, Openness and CO2 emissions in Africa," Research Africa Network Working Papers 17/055, Research Africa Network (RAN).
    3. Simplice A. Asongu & Jacinta C. Nwachukwu & Chris Pyke, 2019. "The Comparative Economics of ICT, Environmental Degradation and Inclusive Human Development in Sub-Saharan Africa," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 143(3), pages 1271-1297, June.
    4. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Environmental degradation and inclusive human development in sub‐Saharan Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 27(1), pages 25-34, January.
    5. Asongu, Simplice, 2018. "CO2 emission thresholds for inclusive human development in Sub-Saharan Africa," MPRA Paper 89130, University Library of Munich, Germany.
    6. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Mobile Phone Innovation and Environmental Sustainability in Sub-Saharan Africa," Research Africa Network Working Papers 17/025, Research Africa Network (RAN).
    7. Simplice A. Asongu & Nicholas M. Odhiambo, 2019. "Economic Development Thresholds for a Green Economy in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 19/010, African Governance and Development Institute..
    8. Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "Governance,CO2 emissions and inclusive human development in Sub-Saharan Africa," Working Papers 25253, University of South Africa, Department of Economics.
    9. Meniago, Christelle & Asongu, Simplice A., 2018. "Revisiting the finance-inequality nexus in a panel of African countries," Research in International Business and Finance, Elsevier, vol. 46(C), pages 399-419.
    10. Simplice A. Asongu & Nicholas M. Odhiambo, 2018. "Environmental Degradation and Inclusive Human Development in sub†Saharan Africa," AFEA Working Papers 18/015, African Finance and Economic Association (AFEA).
    11. Simplice A. Asongu, 2018. "Comparative sustainable development in sub‐Saharan Africa," Sustainable Development, John Wiley & Sons, Ltd., vol. 26(6), pages 638-651, November.
    12. Asongu, Simplice & Odhiambo, Nicholas, 2020. "Trade and FDI Thresholds of CO2 emissions for a Green Economy in Sub-Saharan Africa," MPRA Paper 107494, University Library of Munich, Germany.
    13. Asongu, Simplice & Odhiambo, Nicholas, 2020. "The role of Globalization in Modulating the Effect of Environmental Degradation on Inclusive Human Development," MPRA Paper 103143, University Library of Munich, Germany.
    14. Simplice A. Asongu & Rexon T. Nting, 2021. "The Mobile Phone in Governance for Environmental Sustainability in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 21/035, African Governance and Development Institute..
    15. Simplice A. Asongu & Joseph Nnanna, 2021. "Globalization, Governance and the Green Economy in Sub-Saharan Africa: Policy Thresholds," Working Papers 21/015, European Xtramile Centre of African Studies (EXCAS).
    16. Simplice A. Asongu & Joseph Nnanna, 2021. "Globalization, Governance and the Green Economy in Sub-Saharan Africa: Policy Thresholds," Working Papers 21/015, European Xtramile Centre of African Studies (EXCAS).
    17. Asongu, Simplice & Nwachukwu, Jacinta, 2016. "Mobile Phones in the Diffusion of Knowledge and Persistence in Inclusive Human Development in Sub-Saharan Africa," MPRA Paper 73091, University Library of Munich, Germany, revised May 2016.
    18. Simplice A. Asongu & Jacinta C. Nwachukwu, 2017. "Openness, ICT and Entrepreneurship in Sub-Saharan Africa," Research Africa Network Working Papers 17/032, Research Africa Network (RAN).
    19. Asongu, Simplice A. & Nwachukwu, Jacinta C., 2018. "Educational quality thresholds in the diffusion of knowledge with mobile phones for inclusive human development in sub-Saharan Africa," Technological Forecasting and Social Change, Elsevier, vol. 129(C), pages 164-172.
    20. Asongu, Simplice, 2017. "Mobile Phone Innovation and Technology-driven Exports in Sub-Saharan Africa," MPRA Paper 84040, University Library of Munich, Germany, revised May 2017.

    More about this item

    Keywords

    CO2 emissions; ICT; Economic development; Africa;
    All these keywords.

    JEL classification:

    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • P37 - Economic Systems - - Socialist Institutions and Their Transitions - - - Legal

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:agd:wpaper:17/038. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: . General contact details of provider: https://edirc.repec.org/data/agdiycm.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Asongu Simplice (email available below). General contact details of provider: https://edirc.repec.org/data/agdiycm.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.