Environmental sustainability and financial development in Africa; does institutional quality play any role?

Ntow‐Gyamfi, Matthew; Bokpin, Godfred A.; Aboagye, Anthony Q.Q.; Ackah, Charles

doi:10.1080/21665095.2020.1798261

Cited by 56 publications

(63 citation statements)

References 51 publications

(37 reference statements)

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“…Different viewpoints on the impact of financial development on energy intensity or consumption can be found in the extant relevant literature. One view is that more financial development will result in increased energy consumption or energy intensity ( Ntow-Gyamfi et al., 2020 ). Sadorsky (2010 , 2011) found that financial development promoted energy consumption in 22 rising economies and nine border economies in Eastern and Central Europe.…”

Section: Literature Reviewmentioning

confidence: 99%

Impact of financial development on the energy intensity of developing countries

Zhao

Jia

et al. 2022

Heliyon

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Section: Literature Reviewmentioning

confidence: 99%

Impact of financial development on the energy intensity of developing countries

Zhao

Jia

et al. 2022

Heliyon

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“…Subsequently (Sah, 2021) suggested the need to clean up the institutional arrangement by improving GE, anti-corruption mechanisms, regulatory compliance and the implementation of legal and institutional reforms to ensure that they have a high institutional quality to deal with environmental issues. Ntow-Gyamfi et al (2020) found that a strong institutional framework helps to mitigate the long run adverse effects of financial development on CO 2 emissions, and that improving institutional quality is more likely to promote sustainable development in South Asia (Hunjra et al, 2020). Furthermore, institutional quality, trade, openness and financial development are the main factors to enhance environmental quality (Ahmed et al, 2020).…”

Section: Institutional Quality Related To Co 2 Emissionsmentioning

confidence: 99%

Institutional quality, employment, FDI and environmental degradation in developing countries: evidence from the balanced panel GMM estimator

Xaisongkham

Liu²

2022

IJOEM

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PurposeThe main purpose of this research is to examine the impact of institutional quality and sectoral employment on environmental degradation in developing countries. This paper also re-examined the validity of the Environmental Kuznets Curve (EKC) hypothesis and estimated the long run impact of explanatory variables on CO2 emissions.Design/methodology/approachIn this paper, the balanced panel data for the period 2002–2016 was used based on data availability and applied two-step SYS-GMM estimators.FindingsThe results showed that institutional quality such as government effectiveness (GE) and the rule of law (RL) reduce CO2 emissions and promote environmental quality in developing countries. Interestingly, the authors found new evidence that employment in agriculture and industry has a positive impact on pollution, while employment in the service sector was negatively associated with CO2 emissions, and the validity of the EKC hypothesis was confirmed. In addition, the research suggests that strong institutional frameworks and their effective implementation are the most important panacea and should be treated as a top priority to counteract environmental degradation and achieve the UN Sustainable Development Goals.Originality/valueThis is the first study to examine the short run and long run effects of institutional quality and sectoral employment on environmental degradation using the balanced panel data for a large sample of developing countries. This paper also used a special technique of Driscoll and Kraay standard error approach to confirm the robustness results and showed the different roles of sectoral employment on environmental quality.

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“…(1997) and Barbier (1997) are among the early studies that provide evidence for the EKC hypothesis. For SSA, Ntow-Gyamfi et al. (2020), Bah et al.…”

Section: Literature Reviewmentioning

confidence: 99%

Economic growth, international trade, and environmental degradation in Sub-Saharan Africa

Ssekibaala

Ariffin

Duasa

2022

JED

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PurposeThis study investigates the relationship between economic growth international trade and environmental degradation in Sub-Saharan Africa (SSA) focussing on the validity of the environmental Kuznets hypothesis (EKC), the pollution havens hypothesis (PHH) and the factor endowment hypothesis (FEH).Design/methodology/approachThe study uses annual data for 41 SSA countries for the period between 1990 and 2017 and employs the bias-corrected least square dummy variable (LSDVC) estimation techniques. Environmental degradation is indicated by carbon dioxide (CO2) and fine particulate matter (PM2.5) emissions as well as deforestation.FindingsThe results confirm the validity of the EKC hypothesis for PM2.5 emissions and deforestation but not for CO2 emissions. The results also indicate that international trade reduces deforestation and that both the PHH and FEH are valid for CO2 emission but not for PM2.5 emissions and deforestation.Practical implicationsIn this paper, the authors are able to illustrate that both economic growth and international trade can be harmful to the environment if unchecked. Therefore, conclusion of this study offers policy options through which SSA countries can achieve desired economic growth goals without affecting environmental quality. The study can be a benchmark for environmental policy in the region.Originality/valueThe authors provide an in-depth discussion of the growth-trade-environmental degradation nexus in SSA. The validity of the EKC, PHH, and FEH confirm that economic growth remains a threat to the local natural environment in SSA. Hence, the need for a trade-off between economic growth needs and environmental degradation and understanding where to compromise to achieve SSA's economic development priorities.

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Environmental sustainability and financial development in Africa; does institutional quality play any role?

Cited by 56 publications

References 51 publications

Impact of financial development on the energy intensity of developing countries

Impact of financial development on the energy intensity of developing countries

Institutional quality, employment, FDI and environmental degradation in developing countries: evidence from the balanced panel GMM estimator

Economic growth, international trade, and environmental degradation in Sub-Saharan Africa

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