Ben Yousse , Adel; Dahmani, Mouni
A icle
E alua ing en i onmen al sus ainabili y in A ica: The
ole o en i onmen al axes, p oduc i e capaci ies, and
u baniza ion dynamics
Economies
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Ci a ion: Ben Yousse , Adel, and
Mouni Dahmani. 2024. E alua ing
En i onmen al Sus ainabili y in
A ica: The Role o En i onmen al
Taxes, P oduc i e Capaci ies, and
U baniza ion Dynamics. Economies 12:
80. h ps://doi.o g/10.3390/
economies12040080
Academic Edi o : Angeliki
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Recei ed: 18 Feb ua y 2024
Re ised: 19 Ma ch 2024
Accep ed: 26 Ma ch 2024
Published: 29 Ma ch 2024
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economies
A icle
E alua ing En i onmen al Sus ainabili y in A ica: The Role
o En i onmen al Taxes, P oduc i e Capaci ies, and
U baniza ion Dynamics
Adel Ben Yousse 1,* and Mouni Dahmani 2
1G oupe de Reche che en D oi , Economie, Ges ion (GREDEG), Cen e Na ional de la Reche che
Scien i ique (CNRS), Cô e d’Azu Uni e si y, 06000 Nice, F ance
2Depa men o Economics, Highe Ins i u e o Business Adminis a ion, Uni e si y o Ga sa,
Ga sa 2112, Tunisia; mouni [email p o ec ed]
*Co espondence: adel.ben-yousse @uni -co edazu .
Abs ac : This s udy examines he complex ela ion among en i onmen al axes, p oduc i e capaci-
ies, u baniza ion, and hei collec i e e ec s on en i onmen al quali y in A ica, d awing on wo
decades o da a om wen y A ican coun ies. I si ua es he s udy wi hin he b oade discou se
on sus ainable de elopmen and economic g ow h, emphasizing he En i onmen al Kuzne s Cu e
(EKC) amewo k o examine he ela ionship be ween economic de elopmen , cha ac e ized by
u ban expansion and inc eased p oduc i e capaci ies, and he adop ion o en i onmen al axes amids
he con inen ’s di e se economic and en i onmen al en i onmen s. Using ad anced econome ic
echniques, including he C oss-Sec ion Augmen ed Au o eg essi e Dis ibu ed Lag (CS-ARDL)
model and he Dynamic Common Co ela ed E ec s Mean G oup (DCCEMG) es ima o , he s udy
add esses da a challenges such as c oss-sec ional dependence and slope he e ogenei y. The esul s
p o ide impo an insigh s in o he dynamics o en i onmen al quali y in ela ion o economic and
u ban g ow h and he ole o en i onmen al axa ion. The s udy p oposes ailo ed policy s a egies
aimed a s eng hening sus ainable de elopmen ini ia i es in line wi h in e na ional ag eemen s
such as he Pa is Ag eemen and he Sus ainable De elopmen Goals. These s a egies ad oca e o a
nuanced applica ion o en i onmen al axes and he p omo ion o p oduc i e capaci ies o enhance
en i onmen al sus ainabili y ac oss he A ican con inen .
Keywo ds: en i onmen al axes; p oduc i e capaci ies; u baniza ion; en i onmen al quali y; CS-
ARDL; DCCEMG; AMG; A ica
JEL Classi ica ion: Q56; Q53; Q58; O44; R11; H23
1. In oduc ion
The ques o sus ainable de elopmen in A ica is ma ked by a compelling pa adox:
he con inen ’s minimal con ibu ion o global g eenhouse gas emissions con as s sha ply
wi h i s signi ican ulne abili y o he impac s o clima e change. This s a k con as unde -
sco es he u gen need o A ican coun ies o adop de elopmen models ha combine
economic g ow h wi h en i onmen al sus ainabili y. This challenge is mul idimensional,
equi ing he p omo ion o economic and echnological p og ess while add essing he
impac s o clima e change, all wi hin he amewo k o global sus ainabili y benchma ks
such as he Pa is Ag eemen and he Sus ainable De elopmen Goals (SDGs). A his
c i ical c oss oads whe e aspi a ions o de elopmen , en i onmen al in eg i y, and social
equi y mee , ou s udy seeks o shed ligh on he in ica e linkages be ween economic
de elopmen , en i onmen al sus ainabili y, and social p og ess in he A ican con ex .
The pape iden i ies en i onmen al axes, p oduc i e capaci ies, and u baniza ion
as key a eas o in es iga ion. En i onmen al axes, based on he pollu e pays p inciple
Economies 2024,12, 80. h ps://doi.o g/10.3390/economies12040080 h ps://www.mdpi.com/jou nal/economies
Economies 2024,12, 80 2 o 24
(Eu os a 2013;OECD 2019), a e posi ed as in luen ial mechanisms o p omo ing sus-
ainable p ac ices by imposing inancial penal ies on en i onmen ally ha m ul ac i i-
ies. Howe e , he discou se on hei e ec i eness is di ided. Some s udies empha-
size hei po en ial o mi iga e en i onmen al deg ada ion (Tan e al. 2022;Köppl and
Sch a zens alle 2023), while o he s highligh he socio-economic challenges hey can c ea e
(Al-Rawi e al. 2023;Ullah e al. 2023). This di e gence ein o ces he need o en i on-
men al iscal policies ha a e nuanced and ailo ed o he A ican con ex . A he same
ime, imp o ing p oduc i e capaci ies is eme ging as a c i ical s a egy o sus ainable
g ow h, going beyond me e echnological and in as uc u al ad ances o include human
capi al de elopmen (UNCTAD 2021). Howe e , he empi ical li e a u e p esen s a complex
and a ied pic u e o he ela ionship be ween p oduc i e capaci ies and en i onmen al
sus ainabili y (Demissew Beyene and Ko osz 2020;Xin e al. 2023), unde sco ing he need
o in eg a ed and holis ic de elopmen s a egies.
U baniza ion in A ica p esen s a dual na a i e o p og ess and ulne abili y. While
u ban expansion signals economic de elopmen , i also magni ies en i onmen al chal-
lenges. The ans o ma ion o u ban a eas in o cen e s o economic ac i i y signi ican ly
a ec s en i onmen al quali y, p ima ily h ough changing pollu ion dynamics and esou ce
consump ion pa e ns (Ben Yousse e al. 2021;Balsalob e-Lo en e e al. 2023;Khan e al.
2023;Abdulqadi 2024). Mo eo e , he sea ch o a o dable ene gy in apidly u banizing
con ex s in A ica is closely linked o ising ca bon emissions, which a e pa icula ly p o-
nounced in sub-Saha an A ica (Awad e al. 2023;Wang e al. 2023). These de elopmen s
b ing o he o e on he complex in e ac ions be ween u baniza ion, enewable ene gy
adop ion, and en i onmen al p o ec ion, equi ing a comp ehensi e unde s anding o he
en i onmen al impac s o u ban g ow h o in o m sus ainable de elopmen s a egies.
Using he EKC hypo hesis as a concep ual amewo k (G ossman and K uege 1991;
Dinda 2004;S e n 2004), his s udy examines he complex dynamics be ween en i on-
men al axes, p oduc i e capaci ies, and u baniza ion wi hin A ican coun ies. The EKC
hypo hesis sugges s a nuanced ela ionship be ween economic g ow h and en i onmen al
heal h, posi ing an ini ial inc ease in en i onmen al deg ada ion ha e en ually subsides
as income le els ise. This amewo k is cen al o analyzing he sus ainable de elopmen
ajec o ies o A ican coun ies. This esea ch e alua es how A ican coun ies na iga e
he EKC h ough di e en s ages o economic g ow h and assesses he collec i e impac o
en i onmen al axes, p oduc i e capaci ies, and u baniza ion on en i onmen al quali y. By
employing ad anced econome ic echniques o add ess issues o c oss-sec ional depen-
dence, s uc u al b eaks, and slope he e ogenei y (Pesa an 2006;Bal agi 2015), he s udy
aims o achie e a comp ehensi e and nuanced unde s anding o he da a while add essing
he complexi ies inhe en in panel da a analysis.
This s udy con ibu es o he discou se on sus ainable de elopmen in A ica by p o-
iding empi ically g ounded analysis ha can in o m policy o mula ion and s akeholde
engagemen o sus ainable g ow h. By in eg a ing economic and en i onmen al dynamics
wi hin a obus analy ical amewo k, ou esea ch seeks o guide A ican coun ies owa ds
achie ing he SDGs in line wi h global en i onmen al s anda ds.
The pape is o ganized sequen ially, i s p o iding a li e a u e e iew ha se s he
heo e ical and empi ical s age, ollowed by a de ailed desc ip ion o he esea ch me hodol-
ogy using ad anced econome ic app oaches. An analysis o he da a p ecedes a discussion
sec ion ha si ua es he indings wi hin he b oade na a i e o sus ainable de elop-
men . The s udy concludes wi h policy ecommenda ions aimed a p omo ing sus ainable
de elopmen ac oss he con inen , hus a i ming i s con ibu ion o he global sus ainabil-
i y agenda.
2. Backg ound and Li e a u e Re iew
2.1. Measu ing En i onmen al Quali y
Ad ancing sus ainable de elopmen equi es a nuanced unde s anding o en i on-
men al quali y ha in eg a es ecosys em heal h wi h socio-economic impac s. This in e-
Economies 2024,12, 80 3 o 24
g a ion o human ini ia i es and na u e unde sco es he b ead h o en i onmen al quali y,
which goes beyond me e en i onmen al me ics o include socio-economic impac s on
human p og ess. Yolles (2018) and Pu is e al. (2019) del e in o his deep connec ion
be ween ecosys ems and human well-being, shedding ligh on he mul i ace ed na u e o
en i onmen al challenges. In addi ion, wo k by Shobande e al. (2024) on he ma iage o
in o ma ion echnology in as uc u e wi h enewable ene gy he alds an impo an s ep
in his c oss-disciplina y dialogue, cha ing a pa h owa d clima e adap abili y. Resea ch
by Cagla e al. (2024) and Wang e al. (2024) on he symbio ic ela ionship be ween
en i onmen al axes, enewable ene gy ini ia i es, and he indispensable ole o economic
ingenui y in d i ing en i onmen al p og ess unde sco es he c i ical need o sus ainable
policy amewo ks ailo ed o A ican con ex s.
Cagla e al.’s (2023) explo a ion o he in e play be ween na u al esou ce use and
en i onmen al sus ainabili y h ough he inno a i e lens o he load-capaci y cu e hypo h-
esis o e s new pe spec i es on managing na u al esou ces o imp o ed en i onmen al
heal h. This s udy en iches he b oade discussion o s a egic en i onmen al managemen .
Ali e al. (2024) and Luo e al. (2023) b ing o ligh he subs an ial gains om g een p oduc s
and low-ca bon echnologies, which a e u he enhanced by en i onmen al egula ions
ha p omo e g een inno a ion, highligh ing he need o sound g een ma ke s uc u es
and comp ehensi e policy amewo ks. In addi ion, A shan and Yaqoob’s (2023) analysis
o g een inno a ion and axa ion, posi ioned wi hin he load-capaci y cu e heo y, unde -
sco es he s a egic impo ance o g een policies in he ield o en i onmen al go e nance.
Huang e al. (2023), Ka lila e al. (2023), and Li e al. (2023) con inue his discussion by
analyzing how en i onmen al laws, digi aliza ion, and g een inno a ion a ec business
and en i onmen al sus ainabili y and by a guing in a o o an in eg a ed policy app oach.
The indings o An ila and Jussila (2022), Chukkali e al. (2022), and S uwig (2022) on
he link be ween sus ainabili y and socie al well-being, coupled wi h A sha i e al.’s (2022)
analysis o social sus ainabili y indica o s in he ene gy sec o , call o a holis ic s a egy.
This s a egy, which combines echnological ad ances, enewable ene gy, and uni ied poli-
cies, is pa amoun o add essing he complexi ies o en i onmen al sus ainabili y in A ica
and p omo ing sus ainable p ac ices ac oss he con inen .
2.2. En i onmen al Taxes and En i onmen al Quali y
A ica’s policy oolki o enhancing en i onmen al quali y is s a ing o include en-
i onmen al axes as a key componen . As de ined by he OECD (2019), hese iscal mea-
su es a ge ac i i ies wi h a signi ican en i onmen al oo p in and embody he pollu e
pays p inciple by aiming o in e nalize he cos s associa ed wi h en i onmen al damage
(Eu os a 2013). This ange o axes ex ends om pollu ion axes, such as ca bon axes, aimed
a educing g eenhouse gas emissions (Dahmani 2023;Köppl and Sch a zens alle 2023), o
esou ce axes ha discou age he o e use o na u al esou ces in line wi h ci cula economy
p inciples (Tan e al. 2022), and includes axes on speci ic p oduc s and se ices, such as
single-use plas ics, o p omo e sus ainable consump ion habi s (Runs and Höhle 2022).
The ax a e, he a ailabili y o subs i u es o he goods subjec o he ax, and he dis inc
ins i u ional and economic ea u es o each egion a e among he a iables ha de e mine
whe he en i onmen al axes a e success ul in accomplishing hei objec i es (He e al. 2023;
Yousse e al. 2023). Despi e hei po en ial, he applica ion o hese axes aces challenges, in
pa icula hei eg essi e na u e, which disp opo iona ely a ec s low-income households
(Al-Rawi e al. 2023;Ullah e al. 2023;Ben Yousse and Dahmani 2024), necessi a ing equi able
measu es such as subsidies o ax c edi s o ensu e social equi y. In addi ion, he phenomenon
o ca bon leakage, whe e s ingen en i onmen al axes may induce indus ies o eloca e o
egions wi h less s ingen egula ions (Ahmed e al. 2022), unde sco es he impo ance o
in e na ional coope a ion in he a ea o en i onmen al axa ion.
The double di idend hypo hesis p oposed by Pea ce (1991) in oduces a mo e nu-
anced pe spec i e, sugges ing ha en i onmen al axes can p o ide he dual bene i s o
en i onmen al p o ec ion and employmen g ow h. Howe e , empi ical esea ch p esen s
Economies 2024,12, 80 4 o 24
a mixed pic u e, indica ing a iabili y in he e ec i eness o he hypo hesis ac oss he
A ican con inen , wi h di e en impac s on en i onmen al deg ada ion and employmen
(Mpo u 2022;Zhang e al. 2022;Degi menci and Aydin 2023).
Fu he mo e, en i onmen al axes a e ins umen al in acili a ing he ansi ion o a
g eene economy by p o iding incen i es o bo h businesses and consume s o adop
cleane echnologies and sus ainable p ac ices. This shi could ca alyze inno a ion in g een
echnology sec o s and d i e sus ainable economic p og ess. Howe e , he in luence o
hese axes shows signi ican a ia ion ac oss di e en economic landscapes, highligh ing
he nuanced na u e o hei impac (Abel e al. 2023;Fa ooq e al. 2023). Policy conside -
a ions, as highligh ed by Tchapche Tchou o e al. (2024), poin o he po en ial nega i e
impac s o g een ax egimes on he indus ializa ion p ocess in A ican con ex s, ad o-
ca ing o a balanced and cau ious app oach o he implemen a ion o en i onmen al ax
policies. Compa a i e analyses u he call o he ailo ing o en i onmen al ax policies o
he di e en condi ions p e ailing in A ican coun ies (Amba een 2023;Nema hidi and
Jegede 2023).
The success o en i onmen al axes in encou aging sus ainable p ac ices ac oss a ange
o indus ies has been u he illumina ed by ecen esea ch. These s udies highligh he
s a egic impo ance o en i onmen al axes in acili a ing ca bon seques a ion, encou ag-
ing he adop ion o enewable ene gy, p omo ing digi al inclusion, and a ac ing o eign
in es men . Such iscal s a egies a e closely aligned wi h he SDGs, pa icula ly SDG 7
(clean ene gy) and SDG 13 (clima e ac ion), unde sco ing hei ole in ad ancing A ica
owa ds hese global goals (Bala and Kha oon 2024;Iyke-O oedu e al. 2024;Ullah e al.
2024;Yiadom e al. 2024). This body o esea ch ad oca es o policy amewo ks ha
judiciously balance en i onmen al, economic, and social conside a ions, and posi ions
en i onmen al axes as c i ical ools in un a eling he in ica e nexus be ween economic
ac i i y, u ban de elopmen , and en i onmen al quali y. When applied s a egically, hese
axes can help s ee A ica owa d a sus ainable u u e whe e en i onmen al p o ec ion,
economic g ow h, and social wel a e a e in ha mony.
2.3. P oduc i e Capaci ies, U baniza ion and En i onmen al Quali y
Sus ainable de elopmen in A ica is a complex in e wea ing o p oduc i e capaci ies,
u baniza ion, and en i onmen al quali y. The Uni ed Na ions Con e ence on T ade and
De elopmen (UNCTAD 2021) iden i ies he syne gy o human and na u al esou ces,
oge he wi h ad ances in ene gy, anspo , and in o ma ion and communica ion echnolo-
gies (ICTs), as c i ical pilla s o sus ainable economic g ow h ha is in ha mony wi h he
plane ’s ecological balance.
The cen al ole o human capi al is unde sco ed by Adjei e al. (2023) and
Jahange e al.
(2023), who no e ha imp o ed educa ion and skills can lead o g ea e en i onmen al
awa eness and he adop ion o sus ainable beha io s. Howe e , his inc eased knowl-
edge can also lead o consump ion pa e ns ha s ain na u al esou ces, p esen ing a
nuanced challenge in aligning educa ional p og ess wi h en i onmen al sus ainabili y. The
impo ance o na u al capi al in ensu ing sus ainable economic g ow h is highligh ed by
B and e al. (2017) and Oluc e al. (2023), wi h he la e s udy illus a ing he en i on-
men al impac o s uc u al changes in middle-income coun ies. They a gue o a delica e
balance be ween economic expansion and he p ese a ion o en i onmen al quali y, high-
ligh ing he ade-o s inhe en in s uc u al ans o ma ion e o s.
The ole o enewable ene gy in he ansi ion o he ene gy sec o is c i ical, as shown
by Ahmad and Zhang (2020), Dahmani e al. (2021b), and Mu shed e al. (2022), who
emphasize he need o mi iga e he en i onmen al impac s o adi ional ene gy sou ces.
The e olu ion o he anspo a ion sec o owa ds sus ainabili y is elabo a ed by Hasan e al.
(2019), Li e al. (2021), and Alo aibi e al. (2022), poin ing o he impo ance o sus ainable
mobili y solu ions in minimizing he en i onmen al oo p in o u ban de elopmen .
The adop ion o ICTs poses en i onmen al challenges ha equi e a balanced app oach
o hei deploymen and disposal (Cha i 2021;Dahmani e al. 2021a,2023;Awad 2022;
Economies 2024,12, 80 5 o 24
Awad and Saadaoui Mallek 2023;Lin e al. 2023). This discussion is u he en iched by
Abba Yadou e al. (2024), who examine he nexus be ween emi ances and ecological
oo p in s in A ica, conside ing he mi iga ing ole o ICTs. Thei indings show ha , while
ICTs can exace ba e en i onmen al deg ada ion h ough inc eased ene gy demand, hey
also o e oppo uni ies o educe he en i onmen al impac o emi ances by acili a ing
mo e sus ainable consump ion pa e ns.
E ec i e go e nance and ins i u ional s eng h a e essen ial o s ee ing economic
ac i i y owa d en i onmen al sus ainabili y, wi h esea ch by Awad (2022), Du e al. (2022),
Hadj e al. (2023), and Sahoo e al. (2023) highligh ing he ole o policy and egula ion in
p omo ing sus ainable p ac ices. The in ol emen o he p i a e sec o in en i onmen al
quali y, as discussed by Aldie i e al. (2020) and Demi al and Demi al (2023), illus a es
bo h he oppo uni ies and challenges o in eg a ing sus ainabili y in o business ope a ions.
The signi ican impac o u baniza ion on en i onmen al quali y equi es sus ainable
u ban planning and in as uc u e de elopmen o mi iga e pollu ion, was e gene a ion,
and esou ce deple ion (Li e al. 2021). Khan e al. (2023) and Balsalob e-Lo en e e al. (2023)
examine he en i onmen al impac s o u baniza ion in sub-Saha an A ica and he po en ial
o ICTs o enhance u ban en i onmen al sus ainabili y, espec i ely. Awad e al. (2023)
highligh he posi i e ole o sus ainable in as uc u e in imp o ing u ban ecological
oo p in s, in line wi h he SDGs, which ocus on sus ainable ci ies and communi ies
(SDG 11) and esponsible consump ion and p oduc ion (SDG 12).
Adams and Ka o Fo io’s (2024) indings on economic in eg a ion and en i onmen al
quali y in A ica, Nkemgha e al.’s (2024) explo a ion o he en i onmen al impac s o in-
dus ializa ion mi iga ed by policy s ingency, and Uche and Ngepah’s (2024) examina ion
o he in luence o g een echnology and ene gy ansi ion on Sou h A ica’s load ac o
collec i ely unde sco e he mul i ace ed ela ionship be ween economic ac i i ies, policy
in e en ions, and en i onmen al sus ainabili y. These nuanced pe spec i es unde sco e
he need o in eg a ed s a egies ha de ly na iga e he complex e ain o economic
de elopmen , en i onmen al conse a ion, and social equi y o cha a sus ainable cou se
o he u u e o A ica.
2.4. Sus ainable De elopmen Goals, he En i onmen al Kuzne s Cu e and Thei T ade-O s
The complex ela ionship be ween he SDGs and he EKC p o ides a compelling
lens h ough which o examine he necessa y equilib ium be ween economic p og ess,
en i onmen al conse a ion, and social equi y in A ica. Cen al o his discussion is he
EKC hypo hesis, which posi s an in e ed U-shaped cu e o desc ibe he ela ionship
be ween economic g ow h and en i onmen al deg ada ion. This hypo hesis is c i ically
analyzed by Wu e al. (2024), who in e oga e he “sus ainabili y ilemma” and challenge
he con en ional wisdom ha economic p ospe i y, en i onmen al in eg i y, and social
equi y can be achie ed simul aneously.
A he nexus o his deba e is he s a egic de elopmen o p oduc i e capaci ies, wi h
an emphasis on sus ainabili y. Such p og essi e de elopmen s imply a po en ial shi in
he adi ional ajec o y o he EKC by p omising o p o ide en i onmen al bene i s a he
ou se o economic de elopmen . The wo k o Bou aima e al. (2024) and Ak omah e al.
(2024), which showcase he adop ion o sola ene gy and mycelial composi e echnologies,
is a es amen o he alignmen o economic endea o s wi h en i onmen al sus ainabili y.
These ini ia i es ad oca e o a holis ic app oach o de elopmen ha does no comp omise
en i onmen al p o ec ion, as e lec ed in he SDGs, which ocus on p omo ing sus ainable
u ban en i onmen s (SDG 11) and encou aging mind ul consump ion and p oduc ion
(SDG 12).
Wi hin his inclusi e amewo k, en i onmen al axes a e eme ging as c i ical ools
o ad ancing sus ainabili y. By incen i izing he ansi ion o cleane echnologies and
p ac ices, hese iscal measu es di ec ly suppo he goals o SDG 7 (a o dable and clean
ene gy) and SDG 13 (clima e ac ion). Mo eo e , he inno a i e explo a ion o Eu obonds
o clima e ac ion by Amankwa e al. (2024) illus a es he seamless in eg a ion o inancial
Economies 2024,12, 80 6 o 24
mechanisms wi h en i onmen al goals, he eby p omo ing decen wo k and economic
g ow h (SDG 8).
The discou se also highligh s he signi ican en i onmen al oo p in o u baniza ion,
unde sco ing he u gen need o sus ainable u ban planning and in as uc u e. As u ban
a eas expand, so do he challenges o pollu ion, was e managemen , and esou ce sca ci y.
The indings o Khan e al. (2023) and Balsalob e-Lo en e e al. (2023) highligh he c i ical
need o u ban de elopmen s a egies ha no only add ess hese en i onmen al issues,
bu also s eng hen communi y esilience, inclusi eness, and sus ainabili y, in line wi h
SDG 11. In addi ion, he link be ween emi ances and ecological oo p in s, explo ed by
Abba Yadou e al. (2024), highligh s he c i ical ole o ICTs in mi iga ing he en i onmen al
impac s o economic ac i i ies, hus p o iding iable pa hways o po e y educ ion (SDG 1)
h ough g eene p ac ices.
By wea ing oge he hese di e se s ands o esea ch, he na a i e unde sco es
he impo ance o ecognizing and managing he ade-o s be ween economic g ow h,
en i onmen al p o ec ion, and social equi y. I ad oca es he adop ion o echnological
inno a ions, he applica ion o sus ainable inancial models, and he implemen a ion o
en i onmen ally conscious u ban planning as key s a egies o s ee ing A ica owa d
a sus ainable u u e. By embedding hese s a egies wi hin he ab ic o he SDGs, his
comp ehensi e app oach aims o seamlessly in eg a e economic de elopmen wi h en i-
onmen al s ewa dship and social inclusi i y, p o iding a nuanced bluep in o A ica’s
jou ney owa d sus ainable de elopmen .
3. Da a and Me hodology
3.1. Da a Sou ces and Va iables
This s udy examines he in e ac ion be ween en i onmen al axa ion, p oduc i e
capaci ies, and en i onmen al quali y, ocusing on wen y A ican coun ies om 2000 o
2021. The selec ion o coun ies—Bo swana, Bu kina Faso, Cabo Ve de, Came oon, Cô e
d’I oi e, Egyp , Eswa ini, Ghana, Kenya, Madagasca , Mali, Mo occo, Nige , Uganda, he
Democ a ic Republic o he Congo, Rwanda, Senegal, Sou h A ica, Togo, and Tunisia—
e lec s he dual c i e ia o da a a ailabili y o key a iables and he de e mina ion o he
ime pe iod based on his da a a ailabili y. Key a iables examined include pe capi a
g eenhouse gas emissions (GHG_PC), pe capi a g oss domes ic p oduc (GDP_PC), and
GDP_PC squa ed o e alua e he EKC hypo hesis, as well as en i onmen al ax e enue
(ERTR), he P oduc i e Capaci ies Index (PCI), and popula ion densi y (PDENS). Da a
sou ces include he O ganiza ion o Economic Coope a ion and De elopmen
(OECD 2023)
and he Uni ed Na ions Con e ence on T ade and De elopmen (UNCTAD 2023).
Table 1highligh s key indica o s and shows ha pe capi a GHG emissions a e age
3621 me ic ons o CO
2
equi alen , anging om 0.755 o 16.642 me ic ons. This a iance
e lec s he di e en le els o indus ial de elopmen and commi men o en i onmen al
policy among he selec ed coun ies. GDP pe capi a, a e aging USD 4,665,318, e eals he
economic he e ogenei y wi hin he g oup, wi h alues anging om USD 587.06 o USD
14,828.29. This economic dispa i y unde sco es he impo ance o weal h and in es men
capaci y in shaping he e ec i eness o en i onmen al policies. En i onmen al ax e enues,
wi h an a e age o 1.125% o GDP and a ange o 0.787, illus a e he a ying in ensi y and
applica ion o en i onmen al iscal policies ac oss he con inen . The PCI, wi h an a e age
o 32.075 and a ange o 13.346 o 53.888, highligh s he di e ences in echnological p og ess
and in as uc u e. In addi ion, popula ion densi y, wi h an a e age o 82,448 pe sons
pe km
2
and a ange o 2.21 o 511.08 pe sons pe km
2
, unde sco es he challenges o
u baniza ion and esou ce managemen , pa icula ly in densely popula ed a eas. This
unde sco es he need o u ban planning and mobili y policies o educe g eenhouse
gas emissions.
Economies 2024,12, 80 7 o 24
Table 1. Va iable de ini ions and desc ip i e s a is ics.
Va iable GHG GDP ERTR PCI PDENS
De ini ion
G eenhouse gas
emissions pe capi a
( ons o ca bon dioxide
equi alen )
G oss domes ic
p oduc pe capi a
(cons an
2015 USD)
En i onmen ally
ela ed ax
e enue (% o he
GDP)
P oduc i e
capaci ies index
Popula ion densi y
(people pe sq. km
o land a ea)
Sou ce OECD OECD OECD UNCTAD OECD
Obs. 440 440 440 440 440
Mean 3.621 4665.318 1.125 32.075 82.448
S d. de . 2.858 3803.491 0.787 10.702 81.708
Min 0.755 587.060 0.040 13.346 2.210
Max 16.642 14,828.290 4.140 53.888 511.080
The compila ion o hese da a p o ides a solid basis o analyzing he complex ela ion-
ships be ween economic g ow h, en i onmen al iscal policies, and en i onmen al quali y in
he A ican con ex . I highligh s he c i ical need o policies ha a e ailo ed o he unique
condi ions and challenges o each coun y. This a ge ed app oach is essen ial o p omo ing
e ec i e en i onmen al go e nance and sus ainable de elopmen ac oss he con inen and
p o ides s akeholde s and policymake s wi h a de ailed oadmap o ha monizing economic,
en i onmen al, and social objec i es in a sus ainable and cohe en manne .
3.2. Me hodological F amewo k and Analysis
3.2.1. Model Speci ica ion and Theo e ical Backg ound
Ou me hodological app oach is g ounded in en i onmen al economics and d aws
on he EKC heo y, which posi s a nuanced ela ionship be ween economic de elopmen
and en i onmen al deg ada ion. O iginally in oduced by Kuzne s (1955) and u he
de eloped by G ossman and K uege (1991), he EKC hypo hesis sugges s ha he en i on-
men al impac o an economy ollows a non-linea ajec o y as i de elops. In he ea ly
s ages o economic g ow h, en i onmen al deg ada ion inc eases due o esou ce-in ensi e
indus ial ac i i ies and minimal en i onmen al egula ion. As a na ion p og esses eco-
nomically, highe income le els acili a e he adop ion o g een echnologies and s onge
en i onmen al policies, leading o a educ ion in pollu ion (Panayo ou 1993;And eoni and
Le inson 2001;Dinda 2004;S e n 2004).
To cap u e hese dynamics, ou model in eg a es GDP pe capi a and i s squa e o cap-
u e he cha ac e is ic in e ed U-shaped cu e o he EKC. We also include en i onmen al
ax e enues, he p oduc i e capaci ies index (PCI), and popula ion densi y as addi ional
a iables o examine hei di ec impac on pe capi a g eenhouse gas (GHG) emissions.
The equa ion o mula ing he model is as ollows:
GHGi =β0+β1GDPi +β2GDP2
i +β3ERTRi +β4PCIi +β5PDENSi +εi (1)
This equa ion e lec s he pe capi a g eenhouse gas emissions
(GHGi )
o he coun y
i
a he ime
, whe e
GDPi
and
GDP2
i
a e he economic ou pu and i s squa e, and
ERTRi
is he en i onmen al ax e enue,
PCIi
is he p oduc i e capaci ies index,
PDENSi
is
popula ion densi y, β0 o β5a e he coe icien s o be es ima ed, and εi is he e o e m.
To acili a e empi ical analysis, we linea ize he model using na u al loga i hms, which
allows he coe icien s o be in e p e ed as elas ici ies. This linea ized o m, shown below,
p o ides insigh in o how pe cen age changes in he independen a iables in luence
pe cen age changes in GHG emissions:
ln(GHGi )=β0+β1ln(GDPi )+β2lnGDP2
i +β3ln(ERTRi )
+β4ln(PCIi )+β5ln(PDENSi )+εi (2)
Economies 2024,12, 80 8 o 24
This speci ica ion allows o a de ailed examina ion o he po en ial EKC in he A ican
con ex and he impac o en i onmen al policies and p oduc i e capaci ies on en i onmen-
al quali y. The inclusion o en i onmen al axes e lec s an examina ion o hei e ec i e-
ness in educing emissions, while he PCI p o ides insigh in o how a coun y’s p oduc i e
capaci ies migh a ec i s en i onmen al oo p in . The model seeks o con ibu e o he
empi ical unde s anding o how sus ainable de elopmen s a egies, in line wi h he Pa is
Ag eemen and he Uni ed Na ions 2030 Agenda o Sus ainable De elopmen , can be
e ec i ely implemen ed in di e en A ican economies.
3.2.2. Selec ion and Jus i ica ion o Econome ic Models
The choice o panel da a models is cen al o ou analysis, which examines he eco-
nomic and en i onmen al dynamics o wen y A ican coun ies o e a wen y- wo-yea
pe iod. Gi en he s uc u e o ou da a, wi h ime pe iods (T) ou numbe ing uni s (N), he
use o panel coin eg a ion echniques eme ges as a me hodologically sound choice, adep
a na iga ing he complexi ies o he ex ensi e ime se ies da a inhe en in ou s udy.
Wi hin he spec um o econome ic models sui able o panel da a analysis, we ha e a
numbe o op ions, each designed o shed ligh on di e en aspec s o ou esea ch ques ions.
S a ic models, including ixed e ec s (FE) and andom e ec s (RE), a e pa icula ly e ec i e
in dealing wi h unobse ed he e ogenei y, allowing he unique cha ac e is ics o each
coun y o be conside ed. Con e sely, when ou ocus shi s o he dynamic in e play
o a iables o e ime, models such as Vec o Au o eg ession (VAR) and Vec o E o
Co ec ion Model (VECM) become indispensable o hei abili y o elucida e he empo al
dependencies and pa hs o equilib ium wi hin he da a.
To u he enhance ou econome ic oolki , he Gene alized Me hod o Momen s
(GMM) s ands ou o i s abili y o deal wi h po en ial speci ica ion e o s o endogenei y
h ough i s inno a i e use o da a momen s o pa ame e es ima ion. In he con ex o
coin eg a ed se ies, bo h Dynamic O dina y Leas Squa es (DOLS) and Fully Modi ied
O dina y Leas Squa es (FMOLS) o e e ined es ima es o long- un ela ionships, while he
Canonical Coin eg a ion Reg ession (CCR) model p o ides adjus men s o endogenei y
and se ial co ela ion, ensu ing obus long- un analysis.
Fo analysis ha equi es a nuanced unde s anding o bo h g oup-le el homogenei ies
and indi idual-speci ic dynamics, he Pooled Mean G oup (PMG), Mean G oup (MG), and
Dynamic Fixed E ec (DFE) es ima o s o e e sa ile app oaches. These me hods a e adep
a balancing he need o indi idual speci ici y wi h o e a ching ends ac oss he da ase .
In addi ion, he D iscoll and K aay model’s esis ance o c oss-sec ional dependence and i s
abili y o p o ide consis en s anda d e o es ima es make i a aluable addi ion o ensu e
analy ical obus ness.
Howe e , he Au o eg essi e Dis ibu ed Lag (ARDL) model, as o mula ed by
Pesa an e al. (2001), is chosen p ima ily o i s abili y o accommoda e a iables o mixed
in eg a ion o de s, hus acili a ing a comp ehensi e examina ion o bo h he sho - un
dynamics and he long- un ela ionships among he a iables unde s udy. The applicabil-
i y o his model o ou ela i ely small sample size and i s compa ibili y wi h he PMG,
MG, and DFE me hodologies unde sco e i s u ili y in p o iding a nuanced examina ion
o he economic and en i onmen al in e aces wi hin ou da ase . Th ough he judicious
applica ion o hese econome ic models, ou s udy seeks o unco e he in ica e ela ion-
ships be ween en i onmen al axes, p oduc i e capaci ies, and en i onmen al quali y in
he con ex o A ican economies, pa ing he way o in o med policy in e en ions and
sus ainable de elopmen s a egies. The ARDL model, which is cen al o he analysis o
he in e ac ions in ou s udy, is desc ibed as ollows:
Yi =αi+
p
∑
j=1
βijYi −j+
q
∑
k=1
γikXki +ϵi (3)
Economies 2024,12, 80 15 o 24
The speci ica ion o he Wes e lund (2007) es is as ollows:
∆yi =δ′
id +αiyi −1−β′ixi −1+
pi
∑
j=1
αijδyi −j+
pi
∑
j=0
γij∆xi −j+ei
This equa ion allows he assessmen o coin eg a ion, accoun ing o he i s di e -
ences be ween he dependen and independen a iables, whe e
ei
ep esen s he e o
e m. The es gene a es wo ypes o s a is ics: g oup mean s a is ics (G
τ
and G
α
) and panel
s a is ics (P
τ
and P
α
), which a e used o es o coin eg a ion ac oss di e en c oss-sec ional
uni s o he en i e panel.
These s a is ics a e exp essed o la ge samples as ollows:
Gτ=1
N
N
∑
i=1
ˆ
αi
SE(ˆ
αi)and Pτ=ˆ
α
SE(ˆ
α)
Fo small samples:
Gα=1
N
N
∑
i=1
Tˆ
αi
ˆ
αi(1)and Pα=Tˆ
α
These es s a e essen ial o con i m he exis ence o long- un ela ionships be ween
he s udied a iables, e en in he p esence o indi idual non-s a iona i y. In he case o
coin eg a ion, we p oceed wi h he analysis o sho - and long- e m ela ionships using
second-gene a ion models ha conside he speci ici ies o he ime se ies in he ace o
common shocks and possible s uc u al changes p esen in ou sample o A ican coun ies.
Table 6p esen s he esul s o he coin eg a ion es s by Wes e lund (2007). These
esul s clea ly indica e he exis ence o a leas one coin eg a ion equa ion in ou model.
The s a is ically signi ican alues o he ou es s a is ics (G
τ
,G
α
,P
τ
, and P
α
) a he 1%
h eshold ejec he null hypo hesis o no coin eg a ion ela ionship among he a iables.
These esul s sugges a long- un ela ionship be ween GHG emissions and ac o s such as
economic g ow h, en i onmen al ax e enues, he p oduc i e capaci ies index, and popu-
la ion densi y in he A ican coun ies in ou panel. This con i ma ion allows us o p oceed
wi h he analysis o long- un elas ici ies using he CS-ARDL, AMG, and DCCEMG models.
Table 6. The esul s om he Wes e lund (2007) coin eg a ion analysis.
S a is ic Value Z-Value p-Value
Gτ−3.852 −9.358 0.000
Gα−11.735 −2.810 0.003
Pτ−17.561 −8.905 0.000
Pα−12.524 −5.845 0.000
No es: The G
τ
and G
α
s a is ics assess coin eg a ion o each indi idual c oss-sec ion, while he P
τ
and P
α
s a is ics
e alua e panel coin eg a ion when he null hypo hesis o no coin eg a ion is assumed.
4. Resul s and Discussion
4.1. Analysis o Long-Run and Sho -Run Rela ionships: CS-ARDL Model
The CS-ARDL model used in ou analysis elucida es he complex dynamics be ween
economic g ow h, en i onmen al policies, and GHG emissions wi hin he A ican con i-
nen , as shown in Table 7. The model’s e o co ec ion e m (ECT), wi h a coe icien o
−
0.666, illus a es he apid abili y o hese economies o ecalib a e owa d equilib ium
a e pe u ba ions, indica ing a high deg ee o adap abili y in he ace o economic and
en i onmen al change. Mo eo e , a CD s a is ic o 0.94 sugges s minimal c oss-sec ional
dependence, ein o cing he app op ia eness o he model o ou analysis.
Economies 2024,12, 80 16 o 24
Table 7. CS-ARDL panel da a es ima ion esul s.
Coe icien S d. E . Z-S a is ics p-Value
Sho - un esul s
ECT (−1) −0.666 0.077 −8.63 0.000
LnGDP 0.868 0.194 −6.85 0.000
LnGDP2 −0.047 0.022 −4.46 0.000
LnERTR −0.016 0.028 −1.52 0.129
LnPCI −0.135 0.079 −2.01 0.045
LnPDENS 0.224 0.192 −2.60 0.009
Long- un esul s
LnGDP 0.645 0.145 9.13 0.000
LnGDP2 −0.037 0.015 −6.51 0.000
LnERTR −0.041 0.027 −1.80 0.071
LnPCI −0.246 0.144 −2.06 0.039
LnPDENS 0.301 0.268 2.72 0.007
CD S a is ic 0.94 0.347
No es: The CD s a is ic es is s anda d no mally dis ibu ed unde he null o hypo hesis o weak c oss-sec ional
dependence.
Examining he ela ionship be ween GDP pe capi a (LnGDP and i s squa e, LnGDP2)
and GHG emissions, we ind suppo o he EKC hypo hesis. Speci ically, he sho - un
and long- un coe icien s o LnGDP (0.868 and 0.645, espec i ely) jux aposed wi h hose o
LnGDP2 (
−
0.047 and
−
0.037, espec i ely) show an ini ial inc ease ollowed by a subsequen
dec ease in GHG emissions ela i e o economic g ow h. This pa e n sugges s ha while
ea ly s ages o economic de elopmen may inc ease emissions, c ossing a ce ain income
h eshold encou ages he adop ion o cleane echnologies, he eby educing emissions.
En i onmen al ax e enues (LnERTR) e eal nuanced e ec s. In he sho un, hei
impac is s a is ically insigni ican (p- alue = 0.129), bu in he long un, he e is a ma ginal
bu nega i e coe icien o
−
0.041 a he 10% signi icance le el. This is consis en wi h
Pea ce’s double di idend hypo hesis, sugges ing ha en i onmen al axes can gene a e
e enue o u he economic de elopmen ini ia i es beyond emissions mi iga ion.
In he A ican con ex , whe e he SDGs a e inc easingly guiding policy p io i ies,
he long- e m impac o en i onmen al axes poin s o po en ial p og ess owa ds hese
goals. Tax e enues, i s a egically ein es ed in sec o s c i ical o sus ainable de elopmen
(e.g., g een in as uc u e, educa ion, heal h), could suppo en i onmen al sus ainabili y
(SDG 13) alongside inclusi e and sus ainable economic g ow h (SDG 8).
The ini ial ine ec i eness o en i onmen al axes is due o he adjus men challenges
wi hin A ican economies. Consis en wi h he indings o Dogan e al. (2022) and
Guo e al. (2022), en enched consump ion habi s and de elopmen ba ie s may hin-
de apid policy adap a ion. Ne e heless, he g adual in luence o en i onmen al axes
o e ime is likely o spu sus ainable in es men and inno a ion in line wi h SDG goals.
The e is an u gen need o add ess ba ie s o he implemen a ion o en i onmen al axes
in A ica, pa icula ly conce ns ela ed o equi y and social jus ice (Al-Rawi e al. 2023)
and he isk o ca bon leakage (Ahmed e al. 2022). O e coming hese hu dles is c i ical o
p og ess owa d key SDGs, pa icula ly hose ocused on po e y educ ion (SDG 1) and
sus ainable consump ion and p oduc ion pa e ns (SDG 12).
Despi e hei ini ially mu ed impac , en i onmen al axes hold signi ican long- e m
p omise o s ee ing A ican coun ies owa d a sus ainable economic pa h. Viewed h ough
he lens o he double di idend hypo hesis and he SDGs, hey o e a powe ul mechanism
o econciling en i onmen al p o ec ion wi h socioeconomic p og ess, p o ided hey
o e come ini ial hu dles and p omo e sus ainable consump ion and p oduc ion p ac ices.
Examining he p oduc i e capaci ies index (LnPCI) ac oss A ican coun ies e eals
signi ican indings, wi h nega i e coe icien s obse ed in bo h he sho e m (
−
0.135)
and long e m (
−
0.246). This sugges s ha imp o ing o e all p oduc i e capaci ies can
Economies 2024,12, 80 17 o 24
con ibu e o educing GHG emissions. While ou analysis did no disagg ega e he
impac o indi idual componen s wi hin he index, an implici associa ion sugges s ha
ad ances in a eas such as human capi al, na u al capi al, ene gy, anspo a ion, ICT, he
p i a e sec o , ins i u ions, and s uc u al change ha e he po en ial o signi ican ly imp o e
en i onmen al quali y and sus ainabili y.
Rega ding human capi al, he indings o Adjei e al. (2023) and Jahange e al. (2023)
highligh ha he p omo ion o skills, educa ion, and heal h could indi ec ly os e be e
na u al esou ce managemen and inc ease en i onmen al awa eness, he eby nudging
socie al beha io s owa d mo e sus ainable p ac ices. A he same ime, nuanced na u al
esou ce managemen , highligh ed by B and e al. (2017) and Oluc e al. (2023), is p o ing
o be c ucial in educing en i onmen al impac s and p omo ing sus ainabili y. In he
ene gy domain, a key ace o he index, he ocus on e iciency, unde sco ed by Ahmad
and Zhang (2020) and Mu shed e al. (2022), plays a c i ical ole in guiding sus ainable
economic de elopmen and p esumably mi iga ing en i onmen al ha ms. In addi ion,
in he anspo a ion sec o , e o s owa ds ene gy e iciency and he adop ion o less
pollu ing echnologies, as desc ibed by Hasan e al. (2019) and Alo aibi e al. (2022), a e
in line wi h he ends iden i ied in ou indings. ICTs also con ibu e o his ecosys em o
p oduc i e capaci ies in a dualis ic manne , inc easing p ocess e iciency and p omo ing
sma e esou ce managemen . Despi e hei po en ial o escala e ene gy consump ion,
ICTs also d i e he ansi ion o a g eene se ice economy, a de elopmen a icula ed by
Cha i (2021), Awad (2022), and Awad and Saadaoui Mallek (2023).
The e ec i eness o ins i u ional amewo ks and he commi men o he p i a e sec o
o sus ainable p ac ices a e seen as essen ial. Robus ins i u ional s uc u es a e essen ial
o he adop ion o e ec i e en i onmen al policies, while a conscien ious p i a e sec o is
c ucial o in eg a ing en i onmen al conside a ions in o i s ope a ional and in es men
decisions. Al hough he di ec impac s o he PCI’s subcomponen s ha e no been assessed
indi idually, i ’s plausible o in e ha comp ehensi e imp o emen s in hese dimensions
could signi ican ly educe GHG emissions in he A ican con ex . Such imp o emen s
ep esen s a egic alignmen wi h he Sus ainable De elopmen Goals (SDGs) and embody
a holis ic me hod o synch onizing economic expansion, en iched quali y o li e, and
en i onmen al p o ec ion.
Examina ion o he impac o popula ion densi y (LnPDENS) on en i onmen al qual-
i y, ep esen ed by GHG emissions, e eals a nuanced ela ionship. Posi i e coe icien s
obse ed in bo h he sho e m (0.224) and long e m (0.301) sugges ha highe popu-
la ion densi y is co ela ed wi h inc eased GHG emissions, challenging he no ion o a
simple ela ionship be ween popula ion densi y and en i onmen al quali y. This inding
is consis en wi h Za co-Pe iñán e al. (2021), who ound an associa ion be ween highe
popula ion densi y and inc eased CO
2
emissions, pa icula ly in u ban a eas. Simila ly,
Dimnwobi e al. (2021) highligh ed he signi ican ole o popula ion g ow h and densi y in
exace ba ing en i onmen al deg ada ion ac oss A ica.
The ele ance o hese indings is u he con i med by esea ch by Haouas e al. (2023)
in he Middle Eas and No h A ica egion, which also showed ha demog aphic ac-
o s con ibu e posi i ely o CO
2
emissions. Luqman e al. (2023) added dep h o his
discussion by di ec ly linking u baniza ion o an inc ease in CO
2
emissions, no ing ha
he apid escala ion o emissions in de eloping u ban a eas e lec s a global end in which
u baniza ion is a p ima y d i e o inc eased emissions. In con as , Kos akis e al. (2023)
p esen ed e idence sugges ing ha highe popula ion densi y in ce ain con ex s could
lead o educ ions in CO
2
emissions, con a y o he gene al end obse ed in ou analy-
sis. This disc epancy unde sco es he complex dynamics unique o he A ican con inen
and highligh s he in ica e ela ionship be ween popula ion densi y and en i onmen al
impac . This complexi y calls o ca e ul conside a ion o he mul iple ac o s a play,
including u ban planning, echnology adop ion, and policy amewo ks, in add essing he
en i onmen al challenges associa ed wi h inc easing popula ion densi y.
Economies 2024,12, 80 18 o 24
4.2. Resul s Robus ness: DCCEMG and AMG Es ima o s
The obus ness checks using he DCCEMG and AMG es ima o s o he long- un
ela ionships be ween economic g ow h, en i onmen al policies, and GHG emissions ac oss
A ican coun ies con i m he ini ial indings om he CS-ARDL model analysis. Table 8,
suppo ed by he CD s a is ic om he DCCEMG model indica ing low c oss-sec ional
dependence, s eng hens he eliabili y o ou esul s.
Table 8. DCCEMG and AMG panel da a long- un es ima ion esul s.
DCCEMG AMG
Va iables Coe icien s S anda d E o Coe icien s S anda d E o
LnGDP 0.916 *** 0.220 0.774 *** 0.214
LnGDP2 −0.037 *** 0.023 −0.018 *** 0.015
LnERTR −0.051 ** 0.030 −0.067 * 0.032
LnPCI −0.195 ** 0.184 −0.152 ** 0.065
LnPDENS 0.260 *** 0.196 0.216 *** 0.180
CD S a is ic 1.05 (0.293)
No es: The CD s a is ic es is s anda d no mally dis ibu ed unde he null hypo hesis o weak c oss-sec ional
dependence. The alue in pa en heses o he CD s a is ic is he p- alue. ***, **, and * indica e he s a is ical
signi icance le el a 1%, 5%, and 10%, espec i ely.
The obse ed coe icien s o LnGDP and LnGDP2 in bo h he DCCEMG (0.916 and
−
0.037) and AMG (0.774 and
−
0.018) models suppo he EKC hypo hesis, showing an
in e ed U-shaped ela ionship be ween economic g ow h and GHG emissions. The e ec s
o LnERTR, wi h coe icien s o
−
0.051 in DCCEMG and
−
0.067 in AMG, indica e a nega i e
impac o en i onmen al axes on emissions, which is mo e p onounced in he AMG model
esul s. This indica es he impo ance o designing en i onmen al iscal policies ha
a e e ec i ely ailo ed o he speci ic needs and con ex s o A ican coun ies o ensu e
emission educ ions.
The analysis also e eals posi i e coe icien s o popula ion densi y (LnPDENS) o
0.260 in DCCEMG and 0.216 in AMG, highligh ing he ole o u baniza ion in inc easing
GHG emissions. This unde sco es he c i ical need o e ec i e u ban managemen and
planning o add ess emissions challenges in he g owing ci ies o A ican coun ies.
These indings om he DCCEMG and AMG es ima es highligh he complex e-
la ionships be ween economic de elopmen , en i onmen al policies, u baniza ion, and
GHG emissions. They highligh he need o in eg a ed s a egies, in line wi h he Sus ain-
able De elopmen Goals (SDGs), o e ec i ely manage GHG emissions while p omo ing
sus ainable de elopmen in A ican coun ies.
4.3. Policy Implica ions and S a egic Recommenda ions
Achie ing sus ainable de elopmen ac oss he A ican con inen equi es a comp e-
hensi e unde s anding o i s di e se economic en i onmen s, en i onmen al challenges,
and social s uc u es. I is he e o e essen ial ha s a egic ecommenda ions a e ca e ully
ailo ed o ensu e ha economic p og ess is in ha mony wi h en i onmen al p o ec ion and
social inclusion.
Fo indus ial hea yweigh s such as Sou h A ica and Egyp , wi h signi ican g een-
house gas emissions, an u gen shi o g een manu ac u ing and inc eased use o enewable
ene gy is c i ical. The ounda ion o his shi lies in he s a egic implemen a ion o g een
axes o incen i ize indus ies o ansi ion o sus ainable p oduc ion p ac ices.
In coun ies expe iencing apid u baniza ion, including Kenya and Nige ia, he impo -
ance o sus ainable u ban planning canno be o e s a ed. S a egies mus p io i ize he
de elopmen o g een public anspo a ion sys ems, he c ea ion o u ban g een spaces, and
he ad ancemen o was e managemen p ac ices. These s eps a e c i ical o educing he
ecological impac o u ban g ow h and ensu ing he sus ainabili y o en i onmen al heal h.
Economies 2024,12, 80 19 o 24
Ag icul u e-based economies, pa icula ly Ghana and Cô e d’I oi e, s and o bene i
immensely om he p omo ion o sus ainable ag icul u al p ac ices. The adop ion o
clima e-sma ag icul u al echniques and measu es o p e en de o es a ion will help
achie e bo h en i onmen al sus ainabili y and ag icul u al p oduc i i y.
Rwanda’s p og ess in digi al ans o ma ion p o ides a unique oppo uni y o le e -
age echnology o p omo e en i onmen al sus ainabili y. The use o ICTs o op imize
ene gy managemen and p omo e sma ag icul u e demons a es he po en ial o digi al
inno a ion o con ibu e o en i onmen al p o ec ion.
Cen al o hese s a egic ecommenda ions o all A ican coun ies is he de elopmen
and applica ion o en i onmen al iscal policies, wi h a pa icula ocus on ine- uning
ca bon axes. These policies mus be ca e ully designed o minimize he bu den on low-
income households, while ensu ing ha he e enues gene a ed a e ein es ed in p ojec s
ha p omo e sus ainable de elopmen . Fu he mo e, in es men s in clean echnologies in
a ious sec o s, including indus y and anspo , a e essen ial o a smoo h ansi ion o a
low-ca bon economy.
Building p oduc i e capaci ies h ough educa ion, esea ch, and inno a ion is ano he
c i ical componen o his app oach. By cul i a ing a wo k o ce capable o leading and
suppo ing g een and digi al ans o ma ions, A ican coun ies can lay he ounda ion o
a u u e ha balances economic g ow h wi h en i onmen al p o ec ion.
Add essing he challenges o apid u baniza ion equi es a ocus on sus ainable in-
as uc u e de elopmen . Regional and in e na ional coope a ion is also essen ial o sha e
knowledge, align en i onmen al policies, and secu e inancial suppo o sus ainable
de elopmen and clima e change ini ia i es.
In eg a ing he SDGs in o na ional policy amewo ks is a c i ical s ep o ensu e ha
economic, social, and en i onmen al goals a e pu sued simul aneously. This app oach
aims o c ea e policy syne gies ha add ess he needs o ulne able popula ions while
p omo ing sus ainable economic oppo uni ies.
By adop ing a holis ic and in eg a ed s a egy ha encompasses en i onmen al, eco-
nomic, and digi al ans o ma ions, A ican coun ies can na iga e owa ds a u u e whe e
de elopmen is economically iable, socially inclusi e, and en i onmen ally sus ainable.
This adap i e s a egy, ailo ed o he unique challenges and oppo uni ies o di e en
A ican coun ies, unde sco es he con inen ’s po en ial o achie e signi ican miles ones
in sus ainable de elopmen and se s a p eceden o balanced and inclusi e g ow h in he
ace o global en i onmen al challenges.
5. Concluding Rema ks and S a egic Ou look
5.1. Conclusions
This esea ch explo es he complex ela ionships be ween en i onmen al iscal policies,
he enhancemen o p oduc i e capaci ies, and hei impac on en i onmen al quali y in
he A ican con ex . The analysis shows ha en i onmen al axes, pa icula ly ca bon axes,
a e e ec i e in educing g eenhouse gas emissions, al hough hei success depends on
ca e ul implemen a ion and adap a ion o he unique ci cums ances o di e en A ican
coun ies. This unde sco es he need o policies ha a e bo h en i onmen ally bene icial
and suppo i e o economic g ow h.
The pape also highligh s ha imp o ing p oduc i e capaci ies h ough inno a ion
and echnology plays an impo an ole in imp o ing en i onmen al quali y. This poin s
o he impo ance o in eg a ing sus ainabili y in o de elopmen s a egies o ensu e ha
economic g ow h does no come a he expense o en i onmen al deg ada ion.
U baniza ion is iden i ied as an impo an ac o , wi h esul s showing ha a eas wi h
high popula ion densi y end o ha e highe le els o GHG emissions. This sugges s he
need o implemen u ban planning and anspo policies ha p omo e sus ainabili y and
minimize he en i onmen al impac o u ban g ow h.
The esea ch highligh s he complex challenges ha A ican coun ies ace in achie ing
sus ainable de elopmen . I calls o in eg a ed app oaches ha conside he economic,
Economies 2024,12, 80 20 o 24
social, and en i onmen al impac s o policies. I also iden i ies he c i ical ole o collabo a-
ion be ween go e nmen s, he p i a e sec o , in e na ional o ganiza ions, and ci il socie y
in mo ing owa ds mo e sus ainable and esilien economies.
5.2. Limi a ions and Fu u e Recommenda ions
While p o iding aluable insigh s, his s udy has ce ain limi a ions due o i s eliance
on seconda y da a, which may limi he dep h o empo al and spa ial analysis and a ec he
gene alizabili y o he indings ac oss A ica’s di e se landscape. The use o he agg ega ed
p oduc i e capaci ies index (PCI) may mask he di e en ial impac o i s componen s on
en i onmen al sus ainabili y.
Fu u e esea ch should aim o disagg ega e he PCI o unde s and he speci ic impac s
o i s componen s on en i onmen al quali y. Longi udinal s udies wi h de ailed, coun y-
speci ic da a could imp o e ou unde s anding o how economic-en i onmen al dynamics
e ol e o e ime. Examining he ole o ins i u ional and socioeconomic ac o s in he
e ec i eness o en i onmen al iscal policies could p o ide deepe insigh s in o how o
op imize policies o di e en A ican con ex s.
Expanding he scope o he model o include a iables ela ed o echnological inno a-
ion, g een in es men , and socie al beha io could p o ide a mo e comp ehensi e iew
o sus ainable de elopmen pa hways. Con inuing his esea ch will no only add ess he
iden i ied gaps bu will also con ibu e o he discou se on sus ainable de elopmen and
p o ide p ac ical insigh s o policy de elopmen and implemen a ion ac oss A ica.
Au ho Con ibu ions: Concep ualiza ion, A.B.Y. and M.D.; me hodology, A.B.Y. and M.D.; o mal
analysis, A.B.Y. and M.D.; w i ing—o iginal d a p epa a ion, A.B.Y. and M.D.; w i ing— e iew and
edi ing, A.B.Y. and M.D. All au ho s ha e ead and ag eed o he published e sion o he manusc ip .
Funding: This esea ch ecei ed no ex e nal unding.
Ins i u ional Re iew Boa d S a emen : No applicable.
In o med Consen S a emen : No applicable.
Da a A ailabili y S a emen : The s udy’s da a is publicly a ailable. Sou ces include he OECD’s G een
G ow h Indica o s, accessible a h ps://s a s.oecd.o g/Index.aspx?Da aSe Code=GREEN_GROWTH
(accessed on 27 No embe 2023), and UNCTAD’s P oduc i e Capaci ies Index (PCI), a ailable a
h ps://unc ads a .unc ad.o g/da acen e/da a iewe /US.PCI (accessed on 27 No embe 2023).
Con lic s o In e es : The au ho s decla e no con lic s o in e es .
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