Governance, CO₂ emissions and inclusive human development in sub-Saharan Africa

• Published in: Energy exploration & exploitation Vol. 38; no. 1; pp. 18 - 36
• Main Authors: Asongu, Simplice A, Odhiambo, Nicholas M
• Format: Journal Article
• Language: English
• Published: London, England Sage Publications, Ltd 01-01-2020; SAGE Publications; Sage Publications Ltd
• Subjects: Carbon dioxide; Carbon dioxide emissions; Control; Corruption; Dynamic stability; Economic models; Emission measurements; Environmental degradation; Legislation; Method of moments; Political factors; Politics; Rule of law; Special Issue: Energy for Sustainable Development in Sub-Saharan Africa; Sub-Saharan Africa; economic development; CO2 emissions; Africa
• ISSN: 0144-5987; 2048-4054
• DOI: 10.1177/0144598719835594

This study investigates the relevance of government quality in moderating the incidence of environmental degradation on inclusive human development in 44 sub-Saharan African countries for the period 2000–2012. Environmental degradation is measured with CO₂ emissions and the governance dynamics include: political stability, voice and accountability, government effectiveness, regulation quality, the rule of law and corruption-control. The empirical evidence is based on the generalised method of moments. Regulation quality modulates CO₂ emissions to exert a net negative effect on inclusive development. Institutional governance (consisting of corruptioncontrol and the rule of law) modulates CO₂ emissions to also exert a net negative effect on inclusive human development. Fortunately, the corresponding interactive effects are positive, which indicates that good governance needs to be enhanced to achieve positive net effects. A policy threshold of institutional governance at which institutional governance completely dampens the unfavourable effect of CO₂ emissions on inclusive human development is established. Other policy implications are discussed.