The invisible hand and EKC hypothesis: what are the drivers of environmental degradation and pollution in Africa?

Samuel Asumadu Sarkodie*

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    105 Citations (Scopus)

    Abstract

    This study examined the drivers of environmental degradation and pollution in 17 countries in Africa from 1971 to 2013. The empirical study was analyzed with Westerlund error-correction model and panel cointegration tests with 1000 bootstrapping samples, U-shape test, fixed and random effect estimators, and panel causality test. The investigation of the nexus between environmental pollution economic growth in Africa confirms the validity of the EKC hypothesis in Africa at a turning point of US$ 5702 GDP per capita. However, the nexus between environmental degradation and economic growth reveals a U shape at a lower bound GDP of US$ 101/capita and upper bound GDP of US$ 8050/capita, at a turning point of US$ 7958 GDP per capita, confirming the scale effect hypothesis. The empirical findings revealed that energy consumption, food production, economic growth, permanent crop, agricultural land, birth rate, and fertility rate play a major role in environmental degradation and pollution in Africa, thus supporting the global indicators for achieving the sustainable development goals by 2030.

    Original languageEnglish
    Pages (from-to)21993–22022
    Number of pages30
    JournalEnvironmental Science and Pollution Research
    Volume25
    Issue number22
    Early online date24 May 2018
    DOIs
    Publication statusPublished - Aug 2018

    Keywords

    • Africa
    • Cross-sectional dependence
    • Econometrics
    • Panel cointegration test
    • Panel Granger causality

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