Evaluating Environmental Sustainability in Africa: The Role of Environmental Taxes, Productive Capacities, and Urbanization Dynamics
Abstract
:1. Introduction
2. Background and Literature Review
2.1. Measuring Environmental Quality
2.2. Environmental Taxes and Environmental Quality
2.3. Productive Capacities, Urbanization and Environmental Quality
2.4. Sustainable Development Goals, the Environmental Kuznets Curve and Their Trade-Offs
3. Data and Methodology
3.1. Data Sources and Variables
3.2. Methodological Framework and Analysis
3.2.1. Model Specification and Theoretical Background
3.2.2. Selection and Justification of Econometric Models
3.3. Estimation Techniques and Preliminary Tests
3.3.1. Cross-Sectional Dependence Tests
3.3.2. Slope Homogeneity Tests
3.3.3. Second-Generation Panel Unit Root Tests
3.3.4. Cointegration Test
4. Results and Discussion
4.1. Analysis of Long-Run and Short-Run Relationships: CS-ARDL Model
4.2. Results Robustness: DCCEMG and AMG Estimators
4.3. Policy Implications and Strategic Recommendations
5. Concluding Remarks and Strategic Outlook
5.1. Conclusions
5.2. Limitations and Future Recommendations
Author Contributions
Funding
Institutional Review Board Statement
Informed Consent Statement
Data Availability Statement
Conflicts of Interest
References
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Variable | GHG | GDP | ERTR | PCI | PDENS |
---|---|---|---|---|---|
Definition | Greenhouse gas emissions per capita (tons of carbon dioxide equivalent) | Gross domestic product per capita (constant 2015 USD) | Environmentally related tax revenue (% of the GDP) | Productive capacities index | Population density (people per sq. km of land area) |
Source | OECD | OECD | OECD | UNCTAD | OECD |
Obs. | 440 | 440 | 440 | 440 | 440 |
Mean | 3.621 | 4665.318 | 1.125 | 32.075 | 82.448 |
Std. dev. | 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 |
Variables | CD | CDw+ |
---|---|---|
GHG emissions per capita (LnGHG) | 16.00 *** | 467.53 *** |
GDP per capita (LnGDP) | 47.41 *** | 710.54 *** |
Squared GDP per capita (LnGDP2) | 47.44 *** | 711.60 *** |
Environmentally related tax revenue (LnERTR) | 1.91 * | 339.78 *** |
Productive Capacities Index (LnPCI) | 56.36 *** | 774.59 *** |
Population density (LnPDENS) | 33.71 *** | 819.24 *** |
Slope Homogeneity Tests | ∆ Statistic | p-Value |
---|---|---|
test | 13.934 | 0.000 |
test | 16.340 | 0.000 |
Variables | Level | First-Difference | Ordre | ||
---|---|---|---|---|---|
Without Trend | With Trend | Without Trend | With Trend | ||
Cross-Sectionally Augmented IPS (CIPS) | |||||
LnGHG | −2.370 ** | −3.236 *** | −4.424 *** | −4.496 *** | I(1) |
LnGDP | −2.307 ** | −2.042 | −3.901 *** | −4.278 *** | I(1) |
LnGDP2 | −2.271 ** | −2.048 | −3.899 *** | −4.265 *** | I(1) |
LnERTR | −1.917 | −2.932 *** | −4.629 *** | −4.700 *** | I(0) |
LnPCI | −2.192 * | −2.548 | −4.464 *** | −4.662 *** | I(1) |
LnPDENS | −2.043 | −2.332 | −3.780 *** | −4.100 *** | I(1) |
Cross-Sectionally Augmented Dicky–Fuller (CADF) | |||||
LnGHG | −1.831 | −2.720 ** | −3.738 *** | −3.965 *** | I(1) |
LnGDP | −1.905 | −1.861 | −3.812 *** | −4.176 *** | I(1) |
LnGDP2 | −1.984 | −1.905 | −2.703 *** | −2.872 *** | I(1) |
LnERTR | −1.826 | −2.838 *** | −4.708 *** | −4.723 *** | I(0) |
LnPCI | −2.047 * | −2.430 | −4.464 *** | −4.520 *** | I(1) |
LnPDENS | −2.186 * | −2.538 | −4.293 *** | −4.290 *** | I(1) |
Bai and Perron Critical Values | ||||
---|---|---|---|---|
Test Statistic | 1% Critical Value | 5% Critical Value | 10% Critical Value | |
F(1|0) | 4.19 | 6.09 | 4.66 | 4.03 |
F(2|1) | 3.86 | 6.59 | 5.24 | 4.64 |
F(3|2) | 3.78 | 6.92 | 5.61 | 4.99 |
F(4|3) | 2.71 | 7.33 | 5.87 | 5.23 |
F(5|4) | 1.54 | 7.49 | 6.05 | 5.45 |
Statistic | 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 |
Coefficient | Std. Err. | Z-Statistics | p-Value | |
---|---|---|---|---|
Short-run results | ||||
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-run results | ||||
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 Statistic | 0.94 | 0.347 |
DCCEMG | AMG | |||
---|---|---|---|---|
Variables | Coefficients | Standard Error | Coefficients | Standard Error |
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 Statistic | 1.05 (0.293) |
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Share and Cite
Ben Youssef, A.; Dahmani, M. Evaluating Environmental Sustainability in Africa: The Role of Environmental Taxes, Productive Capacities, and Urbanization Dynamics. Economies 2024, 12, 80. https://doi.org/10.3390/economies12040080
Ben Youssef A, Dahmani M. Evaluating Environmental Sustainability in Africa: The Role of Environmental Taxes, Productive Capacities, and Urbanization Dynamics. Economies. 2024; 12(4):80. https://doi.org/10.3390/economies12040080
Chicago/Turabian StyleBen Youssef, Adel, and Mounir Dahmani. 2024. "Evaluating Environmental Sustainability in Africa: The Role of Environmental Taxes, Productive Capacities, and Urbanization Dynamics" Economies 12, no. 4: 80. https://doi.org/10.3390/economies12040080