Economic integration and environmental quality: accounting for the roles of financial development, industrialization, urbanization and renewable energy

This study investigates the effect of economic integration on the environment in a sample of 36 African countries from 1990 to 2018. We employ the fixed-effect D&K estimator and the mediation analysis to examine direct and indirect effects, respectively. The findings reveal that economic integra...

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Published inJournal of environmental planning and management Vol. 67; no. 3; pp. 688 - 713
Main Authors Adams, Samuel, Kaffo Fotio, Hervé
Format Journal Article
LanguageEnglish
Published Abingdon Routledge 23.02.2024
Taylor & Francis Ltd
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Online AccessGet full text
ISSN0964-0568
1360-0559
1360-0559
DOI10.1080/09640568.2022.2131510

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Abstract This study investigates the effect of economic integration on the environment in a sample of 36 African countries from 1990 to 2018. We employ the fixed-effect D&K estimator and the mediation analysis to examine direct and indirect effects, respectively. The findings reveal that economic integration improves the environment only when its negative indirect effects are neutralized. Precisely, economic integration has a direct negative effect on carbon dioxide (CO 2 ) emissions and an indirect positive effect through urbanization, renewable energy consumption, financial development, and industrialization. The net effect is positive, and therefore, economic integration undermines the environmental quality in Africa. This result is robust when economic integration is split into trade and financial integration. The main implication of this study is that integration policies in Africa should also target greening the financial sector, sustainable urban planning, energy efficiency in the industrial sector, and renewable energy use.
AbstractList This study investigates the effect of economic integration on the environment in a sample of 36 African countries from 1990 to 2018. We employ the fixed-effect D&K estimator and the mediation analysis to examine direct and indirect effects, respectively. The findings reveal that economic integration improves the environment only when its negative indirect effects are neutralized. Precisely, economic integration has a direct negative effect on carbon dioxide (CO2) emissions and an indirect positive effect through urbanization, renewable energy consumption, financial development, and industrialization. The net effect is positive, and therefore, economic integration undermines the environmental quality in Africa. This result is robust when economic integration is split into trade and financial integration. The main implication of this study is that integration policies in Africa should also target greening the financial sector, sustainable urban planning, energy efficiency in the industrial sector, and renewable energy use.
This study investigates the effect of economic integration on the environment in a sample of 36 African countries from 1990 to 2018. We employ the fixed-effect D&K estimator and the mediation analysis to examine direct and indirect effects, respectively. The findings reveal that economic integration improves the environment only when its negative indirect effects are neutralized. Precisely, economic integration has a direct negative effect on carbon dioxide (CO 2 ) emissions and an indirect positive effect through urbanization, renewable energy consumption, financial development, and industrialization. The net effect is positive, and therefore, economic integration undermines the environmental quality in Africa. This result is robust when economic integration is split into trade and financial integration. The main implication of this study is that integration policies in Africa should also target greening the financial sector, sustainable urban planning, energy efficiency in the industrial sector, and renewable energy use.
This study investigates the effect of economic integration on the environment in a sample of 36 African countries from 1990 to 2018. We employ the fixed-effect D&K estimator and the mediation analysis to examine direct and indirect effects, respectively. The findings reveal that economic integration improves the environment only when its negative indirect effects are neutralized. Precisely, economic integration has a direct negative effect on carbon dioxide (CO₂) emissions and an indirect positive effect through urbanization, renewable energy consumption, financial development, and industrialization. The net effect is positive, and therefore, economic integration undermines the environmental quality in Africa. This result is robust when economic integration is split into trade and financial integration. The main implication of this study is that integration policies in Africa should also target greening the financial sector, sustainable urban planning, energy efficiency in the industrial sector, and renewable energy use.
Author Kaffo Fotio, Hervé
Adams, Samuel
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Snippet This study investigates the effect of economic integration on the environment in a sample of 36 African countries from 1990 to 2018. We employ the fixed-effect...
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SubjectTerms administrative management
Africa
Alternative energy
Carbon dioxide
carbon dioxide emissions
Economic development
Economic integration
Economics
Energy consumption
Energy development
Energy efficiency
Environmental quality
Financial planning
indirect effect
Indirect effects
Industrial development
Industrialization
Integration
Renewable energy
renewable energy sources
trade
Urban planning
Urbanization
Title Economic integration and environmental quality: accounting for the roles of financial development, industrialization, urbanization and renewable energy
URI https://www.tandfonline.com/doi/abs/10.1080/09640568.2022.2131510
https://www.proquest.com/docview/2914962755
https://www.proquest.com/docview/2942103870
Volume 67
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