Examining the role of climate finance in the Environmental Kuznets Curve for Sub-Sahara African countries

Doku, Isaac; Ncwadi, Ronney; Phiri, Andrew

doi:10.1080/23322039.2021.1965357

Cited by 7 publications

(6 citation statements)

References 55 publications

(59 reference statements)

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“…This is expected to increase the agricultural yield of most beneficiary countries, which in turn reduces food prices due to bumper harvests. Therefore, it can be stated that cf has yielded positive results in the agricultural sector in ssa, which confirms the dictates of the climfin effect proposed by Doku, Ncwadi, and Phiri (2021a) and is consistent with both investment and modernisation theories. Other cf variables included in the model -aid and fdi -did not show any significant impact on food prices.…”

Section: Resultssupporting

confidence: 84%

“…Climate finance is widely recognised as a form of international aid that provides support to vulnerable countries, particularly those in Sub-Saharan Africa, to mitigate and adapt to the impacts of climate change. Previous studies, including Doku, Ncwadi, and Phiri (2021a;2021b), Doku, Richardson, and Essah (2022), Doku andPhiri (2022), andDoku (2022), have examined the potential of climate finance to address food insecurity in these regions. In this study, we explore the relationship between food aid and food prices by drawing on investment theory and modernisation theory (Bezuneh and Deaton 1997).…”

Section: Theoretical Literaturementioning

confidence: 99%

“…The accord proposed a fast-start finance of usd 30 billion for the period 2010-2012. Although usd 35 billion was raised above this commitment value, only usd 0.75 billion (representing 2.1) was disbursed to the agricultural sector (Doku, Ncwadi, and Phiri 2021a;Doku, Richardson, and Essah 2022;Doku 2022). Doku, Ncwadi, and Phiri (2021b) posited that the impact of climate finance on environmental degradation follows a U curve known as the climate finance effect (climfin effect).…”

Section: Theoretical Literaturementioning

confidence: 99%

“…Based on that, this study seeks to find out whether the climate finance so far received is helping stabilise food prices in the region expected to be worst hit by climate change. Climate finance (cf) is a fund pledged by developed countries to provide an amount of money to help developing countries mitigate and adapt to climate change (Doku, Ncwadi, and Phiri 2021a). The findings show that climate finance has a significant food price reduction effect in the face of stronger control of corruption in ssa.…”

Section: Introductionmentioning

confidence: 98%

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Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

Doku,

Phiri

2023

MGT

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This study explores the potential impact of climate finance (cf) on foodprices in Sub-Saharan Africa (SSA) as climate change continues to createfood scarcity and increase food prices. The study analyses data from43 SSA countries between 2006 and 2018 using a panel fixed effect modelwith Driscoll-Kraay standard errors and methods of moments quantile regressions(MMQR). The findings indicate that countries in SSA that receivemore cf, improve their fight against corruption, have good rainfall patterns,experience reduced extreme temperatures, have depreciated currencies,larger populations and higher GDP growth, reduce food imports, increasedomestic food supply, and demonstrate high governance and socialreadiness are likely to experience stable or reduced food prices. Based onthese results, the study recommends that SSA governments prioritise anticorruptionefforts to earn donor trust and increase CF, ultimately leadingto lower food prices in the sub-region. Further, the findings indicatethat good rainfall patterns reduce food prices: this shows the need for SSAcountries to invest in policies that lead to reliablewater supply as irrigation.

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Section: Resultssupporting

confidence: 84%

Section: Theoretical Literaturementioning

confidence: 99%

Section: Theoretical Literaturementioning

confidence: 99%

Section: Introductionmentioning

confidence: 98%

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Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

Doku,

Phiri

2023

MGT

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“…Some researchers agree that in Canada, Denmark, Hong Kong, Japan, New Zealand, Norway, Sweden, Switzerland, the UK, and the USA, financial development can help the reduction of carbon emissions [65]. The impact of carbon emissions on the cost of debt financing in Europe is studied and it is found that carbon emission reductions contribute to lower debt financing costs [66]. Further, there is a study that examined the impact of climate finance on pollutant emissions (CO 2 , CH 4 , and N 2 O) in 19 sub-Saharan African (SSA) countries between 2006 and 2017, and it confirms an inverted U-shaped relationship between climate finance and pollutant emissions [67].…”

Section: Discussion Of Resultsmentioning

confidence: 99%

Impact of Digital Finance on Regional Carbon Emissions: An Empirical Study of Sustainable Development in China

et al. 2022

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China is currently in the process of industrialization, and the excessive consumption of fossil energy results in a significant increase in carbon emissions. With the significant development of information technology and the digital economy, digital finance has gradually become a new model that affects human activities, motivating us to explore the relationship between digital finance and carbon emissions. Based on panel data from 278 cities from 2011 to 2019, this study empirically analyzes the relationship between digital finance and carbon emissions and discusses it in terms of the nonlinearity, regional heterogeneity, and spatial spillover effects. We find empirical evidence indicating that digital finance can mitigate regional carbon emissions. Finally, we propose some relevant suggestions for promoting sustainable and healthy development of digital finance, and achieving carbon emissions reduction.

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Too poor to be clean? A quantile ARDL assessment of the environmental Kuznets curve in SADC countries

Phiri,

Mhaka,

Taonezvi

2023

Environ Dev Sustain

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The purpose of this study is to investigate whether there is a fit of the environmental Kuznets curve for Southern African development community (SADC) countries. To this end, we estimate a quadratic regression between greenhouse gas emissions (CO2, N20, CH4), per capita income and other controls, using the pooled mean group (PMG) and quantile autoregressive distributive lag (QARDL) models applied to annual data spanning from 1990 to 2021. On one hand, the PMG (Pooled mean group) estimators reveal an EKC fit for CO2 emissions (turning point = $4675), an inverse EKC for CH4 emissions (turning point = $6310) and no fit for the N20 emissions. On the other hand, the QARDL estimators further reveal more significant effects existing at the tail end distributions of the curve for all classes of emissions with turning points in the upper (lower) quantiles being higher (lower) than those from the PMG estimators. Further analysis informs us that only Seychelles have crossed the EKC ‘turning point’ at the upper quantile while the remaining countries are ‘too poor to go green.’ Overall, these findings have implications for the debate on climate justice in Africa.

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Examining the role of climate finance in the Environmental Kuznets Curve for Sub-Sahara African countries

Cited by 7 publications

References 55 publications

Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

Is Climate Finance Helping Stabilise Food Prices in Sub-Saharan Africa?

Impact of Digital Finance on Regional Carbon Emissions: An Empirical Study of Sustainable Development in China

Too poor to be clean? A quantile ARDL assessment of the environmental Kuznets curve in SADC countries

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