Enhancing governance for environmental sustainability in sub-Saharan Africa

Simplice Anutechia Asongu · Nicholas Mbaya Odhiambo

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Energy, Environment, Economic Growth Climate Change Policy and Economics Corruption and Economic Development

Abstract

This study assesses whether improving governance standards affects environmental quality in 44 countries in sub-Saharan Africa for the period 2000–2012. The empirical evidence is based on generalized method of moments. Bundled and unbundled governance dynamics are used, notably: (i) political governance (consisting of political stability and “voice and accountability”); (ii) economic governance (entailing government effectiveness and regulation quality), (iii) institutional governance (represented by the rule of law and corruption-control); and (iv) general governance (encompassing political, economic, and institutional governance dynamics). The following hypotheses are tested: (i) Hypothesis 1 ( improving political governance is negatively related to carbon dioxide (CO 2 ) emissions); (ii) Hypothesis 2 ( increasing economic governance is negatively related to CO 2 emissions); and (iii) Hypothesis 3 ( enhancing institutional governance is negatively related to CO 2 emissions). Results of the tested hypotheses show that the validity of Hypothesis 3 cannot be determined based on the results; Hypothesis 2 is not valid, while Hypothesis 1 is partially not valid. The main policy implication is that governance standards need to be further improved in order for government quality to generate the expected unfavorable effects on CO 2 emissions.

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