Transmission channels and indirect effects in the relationship between institutions and environmental degradation in Sub-Saharan Africa

Ssekibaala, Daaki Sadat and Ariffin, Muhammad Irwan and Duasa, Jarita (2021) Transmission channels and indirect effects in the relationship between institutions and environmental degradation in Sub-Saharan Africa. International Journal of Green Economics, 15 (4). pp. 335-358. ISSN 1744-9928 E-ISSN 1744-9936

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Abstract

This paper investigates the relationship between institutional quality and environmental degradation in Sub-Saharan Africa (SSA) focusing on identifying the transmission channels through which institutional quality indirectly affects environmental degradation. We follow the Stochastic regression on the Impact, Population, Affluence and Technology (STIRPAT) model and use annual panel data for 41 SSA countries between 1996 and 2017. The Generalised Method of Moments (GMM) method is used for empirical estimation. Our findings suggest that the Environmental Kuznets Curve (EKC) hypothesis is valid for CO2emissions and deforestation. We also find all institutional quality indicators to have direct effects on environmental degradation indicators which means that poor institutions can increase environmental degradation. Besides, we also find institutional quality to have indirect effects on environmental degradation and identify education, FDI, international trade, political stability, rule of law, energy intensity and population growth as transmission channels through which institutions affect environmental degradation.

Item Type:	Article (Journal)
Uncontrolled Keywords:	institutional quality; environmental degradation; Sub-Saharan Africa; environmental Kuznets curve.
Subjects:	H Social Sciences > HC Economic History and Conditions > HC79.E5 Environmental policy and economic development. Sustainable development. Sustainability. H Social Sciences > HD Industries. Land use. Labor > HD72 Economic growth, development, planning H Social Sciences > HD Industries. Land use. Labor > HD75.6 Economic development. Environmental aspects
Kulliyyahs/Centres/Divisions/Institutes (Can select more than one option. Press CONTROL button):	Kulliyyah of Economics and Management Sciences > Department of Economics
Depositing User:	Muhammad Irwan Ariffin
Date Deposited:	10 May 2022 14:24
Last Modified:	10 May 2022 14:24
URI:	http://irep.iium.edu.my/id/eprint/97798

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