Economic Development Thresholds for a Green Economy in Sub-Saharan Africa

Asongu, Simplice; Odhiambo, Nicholas M.

doi:10.2139/ssrn.3332924

Cited by 20 publications

(19 citation statements)

References 69 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…The advantages of using the GMM compared with other panel data techniques have been documented in the literature (Asongu and Odhiambo, 2020a, 2019a). First, the GMM approach enables a study to account for the potential sources of endogeneity between the explanatory variables by controlling (1) the unobserved heterogeneity with time-invariant omitted variables and (2) simultaneity in all regressors by employing instrumented explanatory variables (Boateng et al., 2018).…”

Section: Methodsmentioning

confidence: 99%

Financial development, income inequality and carbon emissions in sub-Saharan African countries: A panel data analysis

Odhiambo

2020

Energy Exploration & Exploitation

View full text Add to dashboard Cite

This paper examines the dynamic relationship between financial development, income inequality and carbon dioxide (CO2) emissions in a step-wise fashion, using data from 39 sub-Saharan African (SSA) countries during the period 2004–2014. The study uses three income inequality indicators – the Gini coefficient, the Atkinson index and the Palma ratio – to examine these linkages. The study employs the generalised method of moments as the estimation technique. The empirical findings show that financial development unconditionally reduces CO2 emissions in SSA countries. The findings also show that there are threshold levels of income inequality that should not be exceeded in order for the negative impact of financial development on CO2 emissions to be sustained. Specifically, the study finds that the negative impact of financial development on CO2 emissions is likely to change to positive if the following inequality levels are exceeded: 0.591, 0.662 and 5.59, respectively, for the Gini coefficient, the Atkinson index and the Palma ratio. The findings of this study have far-reaching policy implications not only for SSA countries but also for developing countries as a whole. Policy implications are discussed.

show abstract

Section: Methodsmentioning

confidence: 99%

Financial development, income inequality and carbon emissions in sub-Saharan African countries: A panel data analysis

Odhiambo

2020

Energy Exploration & Exploitation

View full text Add to dashboard Cite

show abstract

“…The choice of the estimation technique is in line with literature on the imperative for an estimation approach to be consistent with behavior of data (Kou et al, 2012(Kou et al, , 2014(Kou et al, , 2016(Kou et al, , 2019a(Kou et al, , 2019bLi et al, 2014Li et al, , 2016Zhang et al, 2019;Asongu & Odhiambo, 2020b, 2020c.…”

Section: Gmm: Specification Identification and Exclusion Restrictionsmentioning

confidence: 97%

Not all that glitters is gold: Political stability and trade in Sub-Saharan Africa

Asongu

Kossele

Nnanna³

2021

Crime Law Soc Change

View full text Add to dashboard Cite

This study examines linkages between political stability and trade openness dynamics in a panel of 44 countries in SSA from 1996 to 2016. The empirical evidence is based on the generalized method of moments. From the findings, the negative relationship between political stability and merchandise trade is not significant while the negative relationship between political stability and trade openness (exports plus imports) is significant. Hence, the findings do not validate the tested hypothesis that political stability/no violence increases trade in the sub-region. The perspective that some forms of political stability can slow down and prevent international trade is consistent with Oslon in Rise and Decline of Nations (RADON) and recent contributions to the economic development literature which have shown that not all forms of political stability are development friendly because much depends on the extent to which stability translates into, inter alia, good governance. The principal policy implication is that standards of political governance need to be boosted in order to improve the anticipated effects of political stability on trade, especially in the light of the ambitious African Continental Free Trade Area (AfCFTA). Other policy implications are discussed.

show abstract

“…SSA countries) because of inter alia, the sub-region is characterized by energy grid systems that are some of the worst in the world (Jarrett, 2017;Asongu, Iheonu & Odo, 2019). Moreover, the attendant literature has also documented that the sub-region would be worst hit by the consequences of climate change (Asongu & Odhiambo, 2020a, 2020b. In essence, given that the electricity produced in the whole of SSA is equivalent to that produced in the State of New York of the United States of America (USA), contemporary literature is consistent with the position that apart from the absence of inclusive development which represents a major development challenge in the region, issues relevant to environmental degradation, climate change, low usage of renewable energy and exclusive growth are largely traceable to, inter alia, lack of funding and poor financial development (Nathaniel & Iheonu, 2019;Asongu & Odhiambo, 2019a, 2019bAkinyemi, Efobi, Asongu & Osabuohien, 2019Nathaniel & Bekun, 2020;Joshua & Alola, 2020;Asongu, Agboola, Alola & Bekun, 2020;Joshua, Bekun & Sakordie, 2020).…”

Section: Introductionmentioning

confidence: 99%

Inequality, finance and renewable energy consumption in Sub-Saharan Africa

Asongu

Odhiambo

2021

Renewable Energy

View full text Add to dashboard Cite

The study investigates linkages between financial development, income inequality and renewable energy consumption from 39 countries in Sub-Saharan Africa. The empirical evidence is based on data for the period 2004-2014, Generalized Method of Moments (GMM) and Quantile Regressions (QR). The GMM results show that financial development unconditionally promotes renewable energy consumption while income inequality counteracts the underlying positive effect. The QR results reveal that the GMM findings only withstand empirical validity in bottom quantiles of the renewable energy consumption distribution. In order to increase room for policy implications for the promotion of renewable energy consumption, critical masses of income inequality that should not be exceeded are computed for bottom quantiles of the renewable energy consumption distribution while income inequality thresholds that should be exceeded are computed for top quantiles of the renewable energy consumption distribution. The study reconciles two strands of the literature.Theoretical, practical and policy implications are discussed.

show abstract

Economic Development Thresholds for a Green Economy in Sub-Saharan Africa

Cited by 20 publications

References 69 publications

Financial development, income inequality and carbon emissions in sub-Saharan African countries: A panel data analysis

Financial development, income inequality and carbon emissions in sub-Saharan African countries: A panel data analysis

Not all that glitters is gold: Political stability and trade in Sub-Saharan Africa

Inequality, finance and renewable energy consumption in Sub-Saharan Africa

Contact Info

Product

Resources

About