Carbon tax adoption and foreign direct investment: Evidence from Africa

Yiadom, Eric B.; Mensah, Lord; Bokpin, Godfred A.; Mawutor, John K. M.

doi:10.1080/23322039.2024.2312783

Cogent Economics & Finance

2024

DOI: 10.1080/23322039.2024.2312783

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Carbon tax adoption and foreign direct investment: Evidence from Africa

Eric B. Yiadom,

Lord Mensah,

Godfred A. Bokpin

et al.

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2024

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Cited by 4 publications

References 43 publications

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Macroeconomic soundness and financial inclusion: catalysts for developing robust financial markets in emerging economies

Ofosu-Mensah Ababio,

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Evaluating Environmental Sustainability in Africa: The Role of Environmental Taxes, Productive Capacities, and Urbanization Dynamics

Ben Youssef,

Dahmani

2024

Economies

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This study examines the complex relation among environmental taxes, productive capacities, urbanization, and their collective effects on environmental quality in Africa, drawing on two decades of data from twenty African countries. It situates the study within the broader discourse on sustainable development and economic growth, emphasizing the Environmental Kuznets Curve (EKC) framework to examine the relationship between economic development, characterized by urban expansion and increased productive capacities, and the adoption of environmental taxes amidst the continent’s diverse economic and environmental environments. Using advanced econometric techniques, including the Cross-Section Augmented Autoregressive Distributed Lag (CS-ARDL) model and the Dynamic Common Correlated Effects Mean Group (DCCEMG) estimator, the study addresses data challenges such as cross-sectional dependence and slope heterogeneity. The results provide important insights into the dynamics of environmental quality in relation to economic and urban growth and the role of environmental taxation. The study proposes tailored policy strategies aimed at strengthening sustainable development initiatives in line with international agreements such as the Paris Agreement and the Sustainable Development Goals. These strategies advocate for a nuanced application of environmental taxes and the promotion of productive capacities to enhance environmental sustainability across the African continent.

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Carbon tax adoption and foreign direct investment: Evidence from Africa

Cited by 4 publications

References 43 publications

Carbon footprint of solar based mini-grids in Africa: Drivers and levers for reduction

Carbon footprint of solar based mini-grids in Africa: Drivers and levers for reduction

Macroeconomic soundness and financial inclusion: catalysts for developing robust financial markets in emerging economies

Evaluating Environmental Sustainability in Africa: The Role of Environmental Taxes, Productive Capacities, and Urbanization Dynamics

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