Towards a green future for Sub-Saharan Africa: do electricity access and public debt drive environmental progress?

Abstract

The combination of rising debt levels, poor electricity access, and environmental deterioration could threaten the attainment of the sustainable development goals (SDGs). Hence, this inquiry examined the implications of public borrowing and access to electricity on environmental sustainability (proxied by ecological footprint (ECOL) and carbon dioxide (CO2) emissions) in Sub-Saharan Africa (SSA), largely overlooked in the literature. In addition to pre-estimation, diagnostic, and robustness checks utilized in the study, the instrumental variable generalized method of moment (IV-GMM) approach is employed to examine annual data from 39 SSA economies between 2005 and 2018. The key findings indicate that public debt negatively influences environmental sustainability in the region at a certain level of threshold, while access to electricity has the potential to trigger environmental sustainability but remain below the expected threshold to mitigate environmental damage in SSA. The study provides recommendations for SSA policymakers to significantly reduce pollution and protect the environment which is vital for sustainable development.