Investigating the dynamic relationships between credit supply, economic growth, and the environment: empirical evidence of sub-regional economies in Sub-Saharan Africa

Ntarmah, Albert Henry; Kong, Yusheng; Manu, Emmanuel Kwaku

doi:10.1007/s11356-020-10875-0

Cited by 14 publications

(18 citation statements)

References 47 publications

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“…Before setting out the econometric framework for exploring the relationship between GDP and ED, we provide a theoretical rationale guiding the selection of the variables of the study. ED which is the outcome variable is widely measured using CO 2 (Akadiri et al 2019 ; Ntarmah et al 2020 ; Kong et al 2020 ; Aslam et al 2021 ; Shabani et al 2021 ; Ntarmah et al 2021 ). GDP is selected for the study due to the theoretical proposition of EKC that put forward three channels (scale, composition, and technique effects) through which GDP affects ED (Kurznets 1955; Mitić et al 2019 ; Halliru et al 2020 ).…”

Section: Methodsmentioning

confidence: 99%

“…Theoretically, growth-environmental studies require certain key determinants to be controlled to minimize model uncertainties. According to the literature (Ntarmah et al 2021 ; Ullah et al 2021 ), ED decreases when people shift away from consumption of traditional energy sources to renewable energy sources such as wind and solar power, biomass, and hydropower. This is because the production of these energy sources creates little or no greenhouse gas emissions.…”

Section: Methodsmentioning

confidence: 99%

“…As a result, in our model, we controlled IND. The factors (IND, URB, and REC) jointly controlled in this work were derived from academics such as Wang et al ( 2018 ), Dong et al ( 2019 ), Wang and Su ( 2019 ), Majeed and Tauqir ( 2020 ), Rahman and Vu ( 2020 ), Ntarmah et al ( 2021 ), and Xue et al ( 2022 ).…”

Section: Methodsmentioning

confidence: 99%

“…Since the dataset for this study across the panel exhibits long panel data properties (time, T , is greater than the number of countries, N , in each dataset), a long panel data estimation procedure is recommended for estimating the results. This panel estimation procedure consists of the following six steps: (1) cross-sectional dependence (CD) testing, (2) slope homogeneity testing, (3) panel unit root estimation, (4) panel cointegration testing, (5) panel regression estimates, and (6) Granger causality test (Le and Sarkodie 2020 ; Ntarmah et al 2021 ).…”

Section: Methodsmentioning

confidence: 99%

“…Although there are many growth-environmental studies across the world, the results are diverse. Some scholars established a linear/monotonic relationship (Akadiri et al 2019 ; Destek and Sinha 2020 ; Khan et al 2021 ; Dimnwobi et al 2021 ; Mensah et al 2021 ), but no significant relationship (Omri et al 2015 ; Bekhet et al 2017 ; Charfeddine and Kahia 2019 ), U-shaped (Xu et al 2020 ), inverted U-Shaped–EKC (Al-Mulali et al 2016 ; Halliru et al 2020 ; Ntarmah et al 2021 ), N, or inverted N shape (Mitić et al 2019 ; Sarkodie and Strezov 2019 ). From the perspective of selected countries in West Africa, Halliru et al ( 2020 ) found a U-shaped relationship, while Omojolaibi ( 2010 ) found an inverted-U shaped with OLS but FE regression revealed no significant relationships between GDP and environment.…”

Section: Introductionmentioning

confidence: 99%

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The relationship between economic growth and environmental degradation: could West African countries benefit from EKC hypothesis?

Kong

Zhang

et al. 2022

Environ Sci Pollut Res

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There are growing concerns about environmental degradation and economic expansions in West Africa. Although there are several growth-environmental studies in Africa, there is limited empirical research exploring West African countries’ potential of benefiting from the environmental Kuznets curve (EKC) hypothesis, with the few studies on this subject reporting diverse results based on selected West African countries. To fill this gap, this study explored the relationship between economic growth and environmental degradation within the EKC framework using 16 West African countries sub-grouped into low-income countries (LICs) and lower-middle-income countries (LMICs) between 1990 and 2018. This study implemented second-generation panel econometric estimators that are robust to cross-sectional dependent and parameter heterogeneity. The empirical results revealed that the data is cross-sectionally dependent, heterogeneous, integrated of order one, 1(1), and cointegrated. Controlling for other environmental determinants, panel estimates from the Augmented Meant Group and Common Correlated Effect Mean Group estimators revealed that economic growth accelerates environmental degradation in West African countries, with a greater impact on LMICs, followed by LICs in West Africa. The results also showed that West African countries especially LMICs could benefit from the EKC hypothesis. On the other hand, growth-environmental degradation among LICs in West Africa shows a monotonous increasing relationship. We found strong evidence to support for feedback hypothesis between economic growth and environmental degradation in LMICs, LICs, and West Africa as a whole. Based on the findings, policy recommendations that consider both LMICs and LICs and West Africa as a whole were offered to policymakers. Graphical abstract

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Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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The relationship between economic growth and environmental degradation: could West African countries benefit from EKC hypothesis?

Kong

Zhang

et al. 2022

Environ Sci Pollut Res

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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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The role of bank financing in economic growth and environmental outcomes of sub-Saharan Africa: evidence from novel quantile regression and panel vector autoregressive models

Ntarmah

Kong

Obeng

et al. 2022

Environ Sci Pollut Res

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Investigating the dynamic relationships between credit supply, economic growth, and the environment: empirical evidence of sub-regional economies in Sub-Saharan Africa

Cited by 14 publications

References 47 publications

The relationship between economic growth and environmental degradation: could West African countries benefit from EKC hypothesis?

The relationship between economic growth and environmental degradation: could West African countries benefit from EKC hypothesis?

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

The role of bank financing in economic growth and environmental outcomes of sub-Saharan Africa: evidence from novel quantile regression and panel vector autoregressive models

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