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 in | Journal of environmental planning and management Vol. 67; no. 3; pp. 688 - 713 |
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Main Authors | , |
Format | Journal Article |
Language | English |
Published |
Abingdon
Routledge
23.02.2024
Taylor & Francis Ltd |
Subjects | |
Online Access | Get full text |
ISSN | 0964-0568 1360-0559 1360-0559 |
DOI | 10.1080/09640568.2022.2131510 |
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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. |
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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 |
Author_xml | – sequence: 1 givenname: Samuel surname: Adams fullname: Adams, Samuel organization: Ghana Institute of Management and Public Administration, GIMPA School of Public Service and Governance – sequence: 2 givenname: Hervé orcidid: 0000-0002-7920-8511 surname: Kaffo Fotio fullname: Kaffo Fotio, Hervé organization: Faculty of Economics and Management, University of Maroua |
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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 |
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