Economic Growth, Globalization, and Governance as Determinants of Environmental Quality in Sub-Saharan Africa

Abstract

Even though Sub-Saharan Africa (SSA) is experiencing unsustainable environmental degradation just like the rest of the world, most environmental health studies have focused mainly on the Organization for Economic Co-operation and Development (OECD) countries and other emerging markets. Unimpeded environmental degradation portends many environmental problems with enormous economic and social costs. Therefore, the purpose of this study is to explore the impact of socio-economic, global, and governance factors on environmental sustainability in SSA. Understanding the interaction of these factors will be of immense assistance to policymakers and other officials charged with mitigating environmental degradation in SSA. Utilizing data from 42 countries in SSA covering 1970 - 2018, our empirical estimations using the Generalized Method of Moments (GMM) technique revealed that the primary determinant of environmental performance in SSA is the level of economic activities. The results show a statistically significant positive relationship between economic activities (GDP) and environmental performance. This result does not support the existence of the Environmental Kuznets Curve (EKC) in SSA. Surprisingly, the level of public debt had a statistically significant positive impact on environmental performance. The governance variables signifying the impact of government showed mixed results as political stability, control of corruption, and regulatory quality were not statistically significant, whereas the rule of law, government effectiveness, and institutional strength showed a statistically significant positive impact on environmental performance. Trade openness and population density did not have any statistically significant impact on environmental performance. Mitigating environmental degradation in SSA requires policies that promote income growth and debt forgiveness.