Urbanisation and CO2 emissions in Africa: Do governance matter?
DOI:
https://doi.org/10.18559/rielf.2022.1.3Keywords:
CO2 emissions, governance, urbanization, GMM modelAbstract
This paper determines how good governance complements or counteracts urbanisation in the fight of environmental degradation, including the reduction of CO2 emissions, for 45 African countries over the period 2000-2014. Governance is measured through the six dimensions of the Kaufman governance indicators. Urbanisation is assessed by the urbanisation rate, which refers to the urban population as a proportion of the total population. The empirical evidence is based on the two-stage generalized method of moments (GMM), which eliminates simultaneity bias and considers cross-country variations. Overall, the results show that good governance has a significant effect on reducing CO2 emissions. It is a means to mitigate the potential effect of urbanisation on environmental degradation. The results recommend that governance must be consider in urbanisation policies to achieve a clean environment.
Downloads
References
Abdala, M. A. (2008). Governance of competitive transmission investment in weak institutional systems. Energy Economics, 30, 1306–1320.
View in Google Scholar
Abid, M. (2016). Impact of economic, financial, and institutional factors on CO2 emissions: Evidence from Sub-Saharan Africa economies. Utilities Policy, 41, 85–94.
View in Google Scholar
Agence Internationale de l’Energie (AIE). (2010). World Energy Outlook 2010. Paris: AIE.
View in Google Scholar
Akbostanci, E., Turut-Asi, S., & Tunc, G. I. (2009). The relationship between income and environment in Turkey: Is there an environmental Kuznets curve?. Energy Policy, 37(3), 861–867.
View in Google Scholar
Almeida, T. A. N., & García-Sánchez, I. M. (2017). Sociopolitical and economic elements to explain the environmental performance of countries. Environmental Science and Pollution Research, 24, 3006–3026.
View in Google Scholar
Al-Mulali, U., Che, N. B. C. S., & Fereidouni, H. G. (2012). Exploring the bidirectional long run relationship between urbanization, energy consumption, and carbon dioxide emission. Energy, 46, 156–167.
View in Google Scholar
Al-Mulali, U., & Ozturk, I. (2015). The effect of energy consumption, urbanization, trade openness, industrial output, and the political stability on the environmental degradation in the MENA (Middle East and North African) region. Energy, 84, 382–389.
View in Google Scholar
Ang, J. B. (2007). CO2 emissions, energy consumption, and output in France. Energy Policy, 35(10), 4772–4778.
View in Google Scholar
Apergis, N., & Payne, J. E. (2009). CO2 emissions, energy usage, and output in Central America. Energy Policy, 37(8), 3282–3286.
View in Google Scholar
Asongu, S. A., & Nwachukwu, J. C. (2016a). The role of lifelong learning in political stability and non-violence: Evidence from Africa. Journal of Economic Studies, 43(1), 141–164.
View in Google Scholar
Asongu, S. A., & Nwachukwu, J. C. (2016b). The role of governance in mobile phones for inclusive human development in Sub-Saharan Africa. Technovation, 55–56, 1–13.
View in Google Scholar
Asongu, S. A., & Rangan, G. (2016). Trust and quality of growth. Economics Bulletin, 36(3), 1854–1867.
View in Google Scholar
Baltagi, B., & Li, D. (2002). Series estimation of partially linear panel data models with fixed effects. Annals of Economics and Finance, 3(1), 103–116.
View in Google Scholar
Beck, T., Demirgüç-Kunt, A., & Levine, R. (2003). Law and finance: Why does legal origin matter?. Journal of Comparative Economics, 31(4), 653–675.
View in Google Scholar
Bekhet, H. A., & Othman, N. S. (2017). Impact of urbanization growth on Malaysia CO2 emissions: Evidence from the dynamic relationship. Journal of Cleaner Production, 154, 374‒388.
View in Google Scholar
Bernauer, T., & Koubi, V. (2009). Effects of political institutions on air quality. Ecological Economics, 68, 1355–1365.
View in Google Scholar
Bölük, G., & Mehmet, M. (2015). The renewable energy, growth and environmental Kuznets curve in Turkey: An ARDL approach. Renewable Sustainable Energy Review, 52, 587–595.
View in Google Scholar
Boateng, A., Asongu, SA., Akamavi, R., & Tchamyou, VS. (2018). Information asymmetry and market power in the African banking industry. Journal of Multinational Financial Management, 44(C), 69‒83.
View in Google Scholar
Cao, Z., Wei, J., & Chen, H. B. (2016). CO2 emissions and urbanization correlation in China based on threshold analysis. Ecological Indicators, 61, 193–201.
View in Google Scholar
Chen, J., Cheng, C., & Song, M. (2017). Decomposing inequality in energy related CO2 emissions by source and source increment: The roles of production and residential consumption. Energy Policy, 107, 698–710.
View in Google Scholar
Diao, X. D., Zeng, S. X., Tam, C. M., & Tam, V. W. Y. (2009). EKC analysis for studying economic growth and environmental quality: A case study in China. Journal of Cleaner Production, 17(5), 541–548.
View in Google Scholar
Dutt, K. (2009). Governance, institutions and the environment-income relationship: A cross-country study. Environment Development and Sustainability, 11, 705–723.
View in Google Scholar
Esso, L. J. (2010). Threshold cointegration and causality relationship between energy use and growth in seven African countries. Energy Economics, 32(6), 1383–1391.
View in Google Scholar
Galeotti, M., & Lanza, A. (1999). Desperately seeking (environmental) Kuznets. Paris: Mimeo.
View in Google Scholar
Gouldson, A. P., & Murphy, J. (1997). Ecological modernization: Economic restructuring and the environment. Political Quarterly, 68(B), 74–86.
View in Google Scholar
Halkos, G. E., Sundström, A., & Tzeremes, N. G. (2015). Regional environmental performance and governance quality: A nonparametric analysis. Environmental Economic and Policy Studies, 17, 621‒644.
View in Google Scholar
Halkos, G. E., & Tzeremes, N. G. (2013). National culture and eco-efficiency: An application of conditional partial nonparametric frontiers. Environmental Economic and Policy Studies, 15, 423‒441.
View in Google Scholar
Harbaugh, W., Levinson, A., & Wilson, D. (2000). Re-examining the empirical basis for the environmental Kuznets curve. (NBER Working Paper No. 7711). Cambridge, MA: Na¬tional Bureau of Economic Research.
View in Google Scholar
He, J., & Richard, P. (2010). Environmental Kuznets curve for CO2 in Canada. Ecological Economics 69(5), 1083‒1093.
View in Google Scholar
Heil, M. T., & Selden, T. M. (2001). Carbon emissions and economic development: future trajectories based on historical experience. Environment and Development. Economics, 6(1), 63‒68.
View in Google Scholar
Holtz-Eakin, D., & Selden, T. M. (1995). Stoking the fires? CO2 emissions and economic growth. Journal of Public Economics, 57(1), 85‒101.
View in Google Scholar
Hossain, M. S. (2011). Panel estimation for CO2 emissions, energy consumption, economic growth, trade openness and urbanization of newly industrialized countries. Energy Policy, 39, 6991‒6999.
View in Google Scholar
Hosseini, H. M., & Kaneko, S. (2013). Can environmental quality spread through institutions?. Energy Policy, 56, 312‒321.
View in Google Scholar
Jumbe, C. B. (2004). Cointegration and causality between electricity consumption and GDP: Empirical evidence from Malawi. Energy Economics, 26(1), 61‒68.
View in Google Scholar
Kasman, A., & Duman, Y. S. (2015). CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: A panel data analysis. Economic Modelling, 44, 97‒103.
View in Google Scholar
Lameira, V., Walter, L. N. J., Harris, J. E., & Pereira, R. G. (2016). CO2 emissions, energy use and country governance. International Journal of Industrial and Systems Engineering, 24(2), 241‒256.
View in Google Scholar
Lin, S., Zhao, D., & Marinova, D. (2009). Analysis of the environmental impact of China based on STIRPAT model. Environmental Impact Assessment Review, 29(6), 341‒347.
View in Google Scholar
Liu, X., Zhang, S., & Bae, J. (2017). The impact of renewable energy and agriculture on carbon dioxide emissions: Investigating the environmental Kuznets curve in four selected ASEAN countries. Journal of Cleaner Production, 164, 1239‒1247.
View in Google Scholar
Marcantonini, C., & Valero, V. (2017). Renewable energy and CO2 abatement in Italy. Energy Policy, 106, 600‒613.
View in Google Scholar
Martinez, J., Marti-Herrero, J., Villacis, S., Riofrio, AJ., & Vaca, D. (2017). Analysis of energy, CO2 emissions and economy of the technological migration for clean cooking in Ecuador. Energy Policy, 107, 182‒187.
View in Google Scholar
Martínez-Zarzoso, I., & Maruotti, A. (2011). The impact of urbanization on CO2 emissions: Evidence from developing countries. Ecological Economics, 70, 1344‒1353.
View in Google Scholar
Mehrara, M. (2007). Energy consumption and economic growth: The case of oil exporting countries. Energy Policy, 35(5), 2939–2945.
View in Google Scholar
Menyah, K., & Wolde-Rufael, Y. (2010). Energy consumption, pollutant emissions and economic growth in South Africa. Energy Economics, 32(6), 1374‒1382.
View in Google Scholar
Moomaw, W. R., & Unruh, G. C. (1997). Are Environmental Kuznets Curves misleading us? The case of CO2 emissions. Environment and Development Economics, 2(4), 451‒463.
View in Google Scholar
Mol, A. P. J., & Spaargaren, G. (2000). Ecological modernization theory in debate: A review. Environmental Politics, 9(1), 17‒49.
View in Google Scholar
Nations Unies. (2017). Drivers of migration and urbanization in Africa: Key trends and issues. New York: UN Department of Economic and Social Affairs, Population Division.
View in Google Scholar
Ndour, C., T., & Faye, A. (2021). Commerce international, croissance économique et environnement au Sénégal. Revue Internationale des Économistes de Langue Française, 6(1).
View in Google Scholar
Odhiambo, N. M. (2009a). Electricity consumption and economic growth in South Africa: A trivariate causality test. Energy Economics, 31(5), 635‒640.
View in Google Scholar
Odhiambo, N. M. (2009b). Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach. Energy Policy, 37(2), 617‒622.
View in Google Scholar
Ozturk, I., & Acaravci, A. (2010). CO2 emissions, energy consumption and economic growth in Turkey. Renewable and Sustainable Energy Reviews, 14(9), 3220‒3225.
View in Google Scholar
Ozturk, I., & Al-Mulali, U. (2015). Investigating the validity of the environmental Kuznets curve hypothesis in Cambodia. Ecological Indicators, 57, 324‒330.
View in Google Scholar
Panayotou, T., Peterson, A., & Sachs, J. (2000). Is the Environmental Kuznets Curve driven by structural change? What extended time series may imply for developing countries?. (CAER II Discussion Paper No. 80).
View in Google Scholar
Rafiq, S., Salim, R., & Nielsen, I. (2016). Urbanization, openness, emissions, and energy inten-sity: A study of increasingly urbanized emerging economies. Energy Economics, 56, 20‒28.
View in Google Scholar
Roodman, D. (2009). How to do xtabond2: An introduction to difference and system GMM in Stata. The Stata Journal, 9(1), 86‒136.
View in Google Scholar
Sadorsky, P. (2014). The effect of urbanization on CO2 emissions in emerging economies. Energy Economics, 41, 147‒153.
View in Google Scholar
Samimi, A. J., Ahmadpour, M., & Ghaderi, S. (2012). Governance and environmental degradation in MENA region. Procedia-Social and Behavioral Sciences, 62, 503‒507.
View in Google Scholar
Shahbaz, M., Loganathan, N., Muzaffar, A.T., Ahmed, K., & Jabran, M. A. (2016). How urbanization affects CO2 emissions in Malaysia? The application of STIRPAT model. Renewable Sustainable Energy Review, 57, 83‒93.
View in Google Scholar
Sharma, S. (2011). Determinants of carbon dioxide emissions: Empirical evidence from 69 countries. Applied Energy, 88(1), 376‒382
View in Google Scholar
Tamazian, A., & Bhaskara Rao, B. (2010). Do economic, financial and institutional devel-opments matter for environmental degradation? Evidence from transitional economies. Energy Economics, 32, 137‒145.
View in Google Scholar
Wang, Y., Zhang, X., Kubota, J., Zhu, X., & Lu, G. (2015). A semi-parametric panel data analysis on the urbanization-carbon emissions nexus for OECD countries. Renewable Sustainable Energy Review, 48, 704‒709.
View in Google Scholar
Wang, Z., Zhang, B., & Wang, B. (2018). The moderating role of corruption between economic growth and CO2 emissions: Evidence from BRICS economies. Energy, 148, 506‒513.
View in Google Scholar
Xu, X., Mu, M., & Wang, Q. (2017). Recalculating CO2 emissions from the perspective of value-added trade: An input-output analysis of China’s trade data. Energy Policy, 107, 158‒166.
View in Google Scholar
Zhang, Y. J., Jin, Y. L., Chevallier, J., & Shen, B. (2016). The effect of corruption on carbon dioxide emissions in APEC countries: A panel quantile regression analysis. Technological Forecasting and Social Change, 112, 220‒227.
View in Google Scholar
Zhou, X., Zhang, J., & Li, J. (2013). Industrial structural transformation and carbon dioxide emissions in China. Energy Policy, 57, 43‒51.
View in Google Scholar
Downloads
Published
Issue
Section
License
Copyright (c) 2022 Poznań University of Economics and Business
This work is licensed under a Creative Commons Attribution 4.0 International License.
