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article · Environment and Development Economics

Institutions' quality and environmental pollution in Africa

In plain language

An examination of African nations from 1996 to 2020 investigates the relationship between institutional governance and carbon dioxide emissions. Using dynamic panel data modelling to account for endogeneity, the research evaluates how political regimes and governance quality influence environmental pollution. The primary outcome demonstrates that stronger, higher-quality institutions significantly reduce carbon dioxide emissions across the continent. Additionally, the analysis supports both the environmental Kuznets curve and pollution haven hypotheses. Digitalisation is shown to significantly curb environmental pollution. Conversely, industrialisation, natural resource exploitation, and intensive energy usage operate as positive drivers of emissions. Robustness checks confirm the reliability of the link between effective institutions and lower pollution, providing empirical support for stronger environmental regulations in African economies.

Key takeaways

  • High-quality political governance and stronger institutions significantly lower carbon dioxide emissions across Africa.
  • The findings confirm both the environmental Kuznets curve and the pollution haven hypotheses for African economies.
  • Digitalisation contributes significantly to curbing pollution levels.
  • Industrial expansion, natural resource reliance, and intensive energy consumption drive higher emissions.

Why it matters

Addressing environmental degradation requires understanding how national governance influences emissions. By demonstrating that robust political institutions and digitalisation curb pollution, while industrialisation and intensive energy use increase it, this research provides African policymakers with evidence to support stronger environmental regulations alongside economic development initiatives.

Commercialisation angle

The abstract does not indicate an application pathway, as it focuses strictly on macroeconomic and policy analysis.

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Abstract

Abstract This paper tests the pollution emissions and institutional quality nexus in Africa. Specifically, we analyze the effect of the political regime and the quality of political governance on CO 2 emissions. To control for endogeneity, we apply the system generalized method of moments on a dynamic panel of African countries over the period 1996–2020. The key finding suggests that better institutions have a negative and significant effect on pollution in Africa. The findings also validate the environmental Kuznets curve hypothesis. Moreover, the results support the pollution haven hypothesis. Finally, if digitalization significantly curbs pollution, then industrialization, natural resources, as well as the intensive use of energy, are considered as positive predictors. All the sensitivity and robustness tests globally validate the strength of the negative association between the good quality of institutions and the level of polluting emissions in Africa. The results call for some policy recommendations in environmental regulation for African economies.

Research topics

  • Energy, Environment, Economic Growth
  • Fiscal Policy and Economic Growth
  • Sustainable Development and Environmental Policy

Read the original research

This page summarises published work. The authoritative version sits with the publisher.

DOI: 10.1017/s1355770x24000044

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