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Economic Development Thresholds for a Green Economy in Sub-Saharan Africa

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  • Simplice A. Asongu

    () (Yaoundé/Cameroon)

  • Nicholas M. Odhiambo

    () (Pretoria, South Africa)

Abstract

This study investigates how increasing economic development affects the green economy in terms of CO2 emissions, using data from 44 countries in the SSA for the period 2000-2012. The Generalised Method of Moments (GMM) is used for the empirical analysis. The following main findings are established. First, relative to CO2 emissions, enhancing economic growth and population growth engenders a U-shaped pattern whereas increasing inclusive human development shows a Kuznets curve. Second, increasing GDP growth beyond 25% of annual growth is unfavorable for a green economy. Third, a population growth rate of above 3.089% (i.e. annual %) has a positive effect of CO2 emissions. Fourth, an inequality-adjusted human development index (IHDI) of above 0.4969 is beneficial for a green economy because it is associated with a reduction in CO2 emissions. The established critical masses have policy relevance because they are situated within the policy ranges of adopted economic development dynamics.

Suggested Citation

  • 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..
  • Handle: RePEc:agd:wpaper:19/010
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    References listed on IDEAS

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    Cited by:

    1. Simplice A. Asongu & Rexon T. Nting & Evans S. Osabuohien, 2019. "One Bad Turn Deserves Another: How Terrorism Sustains the Addiction to Capital Flight in Africa," Journal of Industry, Competition and Trade, Springer, vol. 19(3), pages 501-535, September.
    2. Asongu, Simplice A & Odhiambo, Nicholas M, 2019. "The mobile phone,information sharing and financial sector development in Africa: A quantile regressions approach," Working Papers 25363, University of South Africa, Department of Economics.
    3. Simplice A. Asongu, 2019. "Natural Resource Exports, Foreign Aid and Terrorism," Working Papers of the African Governance and Development Institute. 19/023, African Governance and Development Institute..

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    Keywords

    CO2 emissions; Economic development; Africa;

    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

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