scholarly journals Carbon Lock-In and Sustainable Growth Challenges : Evidence from Sub-Saharan Africa

Author(s):  
Aminatou Kemajou Pofoura ◽  
Huaping Sun ◽  
Maxwell Opuni Antwi ◽  
Charles Kwarteng Antwi

This research seeks to investigate the risks of carbon lock-in by examining the potential factors influencing carbon dioxide emissions levels in Sub-Saharan Africa. Given this, we employed a panel Sub-Saharan Africa comprised of 35 countries in the sub-region, from 2000 to 2014 with cross-sectional dependence among variables. We used the Two-step robust System Generalized Method of Moments to estimate the influencing factors of carbon emissions level that create path dependency. The main findings are: (1) income per capita, urbanization, and financial resources contribute to the increase of carbon emissions level in the Sub-Saharan Africa countries, in the short-run; (2) we noticed that in the short-run, the impacts of fossil fuels per capita, energy intensity and total energy consumption are insignificant; (3) in the long-run, income per capita, urbanization and financial resources increase carbon emissions level; (4) from various factors that increase carbon emissions level, these factors form a path dependency that slow the introduction of low-carbon systems, thus, creating carbon lock-in in the Sub-Saharan Africa countries. Considering this, policymakers and governments should ensure the strict compliance of environmental regulations by financial institutions and organizations, promote low-carbon cities during economic transformation, and encourage investments in low-carbon projects. The government should also educate and build awareness on the effects of environmental pollution on population health, provide incentives for energy conservation and promote the use of clean products to avoid future risks of lock-in in the sub-region.

2016 ◽  
Vol 43 (1) ◽  
pp. 48-58 ◽  
Author(s):  
Gregory N. Price ◽  
Juliet U. Elu

Purpose – The purpose of this paper is to use a neoclassical factor pricing approach to carbon emissions, and consider whether the productivity of carbon emissions differs in Sub-Saharan Africa relative to the rest of the world. Design/methodology/approach – Allowing for possible cross-country dependency and correlation in the effects of the factors of production on the level of gross domestic product per capita, the authors estimate the parameters of a cross-country net production function with carbon emissions as an input. Findings – While there is a “Sub-Saharan Africa effect” whereby carbon emissions are less productive as an input relative to the rest of the world; practically it is equally productive relative to all other countries suggesting a unfavorable distributional impact if Sub-Saharan Africa were to implement carbon emissions reductions consistent with the Kyoto Protocol. Research limitations/implications – If global warming is not anthropogenic or caused by carbon emissions, the parameter estimates do not inform an optimal and equitable carbon emissions policy based upon Sub-Saharan Africans reducing their short-run living standards. Practical implications – Fair and equitable global carbon emissions policies should aim to treat Sub-Saharan African countries in proportion to their carbon emissions, and not unfairly impose emissions constraints on them equal to that of countries in the industrialized west. Social implications – As Sub-Saharan Africa has a disproportionate number of individuals in the world living on less than one dollar a day, the results suggest “Black Africa” may not be able to afford being a “Green Africa.” Originality/value – The results are the first to quantify the effects of carbon emissions restrictions on output and their distributional implications for Sub-Saharan Africa.


Author(s):  
Husam Rjoub ◽  
Chuka Uzoma Ifediora ◽  
Jamiu Adetola Odugbesan ◽  
Benneth Chiemelie Iloka ◽  
João Xavier Rita ◽  
...  

Sub-Saharan African countries are known to be bedeviled with some challenges hindering the economic development. Meanwhile, some of these issues have not been exhaustively investigated in the context of the region. Thus, this study aimed at investigating the implications of government effectiveness, availability of natural resources, and security threats on the regions’ economic development. Yearly data, spanning from 2007 to 2020, was converted from low frequency (yearly) to high frequency (quarterly) and utilized. Data analysis was conducted using Dynamic heterogeneous panel level estimators (PMG and CS-ARDL). Findings show that while PMG estimator confirms a long-run causal effect of governance, natural resources, and security threats on economic development, only natural resources show a short-run causal effect with economic development, while the CS-ARDL (model 2) confirms the significance of all the variables both in the long and short-run. Moreover, the ECT coefficients for both models were found to be statistically significant at less than 1% significance level, which indicates that the systems return back to equilibrium in case of a shock that causes disequilibrium, and in addition, reveals a stable long-run cointegration among the variables in the model. Finally, this study suggests that the policy makers in SSA countries should place more emphasis on improving governance, managing security challenges, and effectively utilizing rents from the natural resources, as all these have severe implications for the economic development of the region if not addressed.


Energies ◽  
2021 ◽  
Vol 14 (8) ◽  
pp. 2169
Author(s):  
Pauline Macharia ◽  
Nzula Kitaka ◽  
Paul Yillia ◽  
Norbert Kreuzinger

This study examined the current state of water demand and associated energy input for water supply against a projected increase in water demand in sub-Saharan Africa. Three plausible scenarios, namely, Current State Extends (CSE), Current State Improves (CSI) and Current State Deteriorates (CSD) were developed and applied using nine quantifiable indicators for water demand projections and the associated impact on energy input for water supply for five Water Service Providers (WSPs) in Kenya to demonstrate the feasibility of the approach based on real data in sub-Saharan Africa. Currently, the daily per capita water-use in the service area of four of the five WSPs was below minimum daily requirement of 50 L/p/d. Further, non-revenue water losses were up to three times higher than the regulated benchmark (range 26–63%). Calculations showed a leakage reduction potential of up to 70% and energy savings of up to 12 MWh/a. The projected water demand is expected to increase by at least twelve times the current demand to achieve universal coverage and an average daily per capita consumption of 120 L/p/d for the urban population by 2030. Consequently, the energy input could increase almost twelve-folds with the CSI scenario or up to fifty-folds with the CSE scenario for WSPs where desalination or additional groundwater abstraction is proposed. The approach used can be applied for other WSPs which are experiencing a similar evolution of their water supply and demand drivers in sub-Saharan Africa. WSPs in the sub-region should explore aggressive strategies to jointly address persistent water losses and associated energy input. This would reduce the current water supply-demand gap and minimize the energy input that will be associated with exploring additional water sources that are typically energy intensive.


2018 ◽  
Vol 16 (4) ◽  
pp. 610-638 ◽  
Author(s):  
James Oladapo Alabede

Purpose This study aims to expand the conventional tax effort model to incorporate relevant economic freedom variables to investigate whether economic freedom fosters tax revenue performance in `sub-Saharan Africa (SSA). Design/methodology/approach This study uses data from 42 countries across the four sub-regions of SSA from the period 2005 to 2012 with 252 year-country observations in an unbalanced panel method. The data were statistically treated using feasible generalised least square (FGLS) and panel-corrected standard errors (PCSE) estimate techniques. Findings The findings are twofold. First, the principal finding of the study suggests that economic freedom promotes tax revenue performance. Precisely, the FGLS analysis indicates that property rights freedom, freedom from corruption and investment freedom, as well as the composite economic freedom, exerted positive significant impact on tax revenue performance. This implies that country, which attained high degree of economic freedom, is likely to have higher tax-to-GDP ratio than a country with low level of economic freedom. Secondly, the results of most conventional variables conform to the prediction in the traditional theory except per capita income. Specifically, agriculture share in GDP and per capita income indicate negative significant relationship with tax revenue performance. Originality/value Because little is known empirically about the connection between economic freedom and tax revenue performance, this study extended the conventional tax effort model to incorporate the economic freedom to bridge the knowledge gap due to the absence of empirical evidence on the relationship between economic freedom and tax effort.


2021 ◽  
Vol 11 (8) ◽  
pp. 72-83
Author(s):  
Guivis Zeufack Nkemgha ◽  
Aimée Viviane Mbita ◽  
Symphorin Engone Mve ◽  
Rodrigue Tchoffo

This paper contributes to the understanding of the other neglected effects of trade openness by analysing how it affects life quality in sub-Saharan African countries over the period 2000–2016. We used two trade openness indicators, namely: Squalli and Wilson index and the rate of trade. The empirical evidence is based on a pooled mean group approach. With two panels differentiated by their colonial origin, the following findings are established: the trade openness variable measured by Squalli and Wilson index has no effect on life quality in the both groups of countries in the short-run. However, it has a positive and significant effect on life quality in the both group of countries in the long-run. The use of the rate of trade confirms the results in the both groups of countries in the long-run. The contribution of trade openness to life quality is 3.27 and 5.19 times higher in the Former British Colonies than that recorded in the Former French Colonies of SSA respectively to the use of Squalli and Wilson index and the rate of trade. Overall, we find strong evidence supporting the view that trade openness promotes life quality in SSA countries in the long run.


1988 ◽  
Vol 26 (3) ◽  
pp. 473-493 ◽  
Author(s):  
J. B. Knight

South Africa has neither a developed nor a typical underdeveloped economy. Too often it has been wrongly classified, along with, say, Australia and New Zealand, as one of the peripheral developed countries, because only a part of the economy and population have the characteristics we associate with that group. Yet its economy is distinctly different from others in sub-Saharan Africa. South Africa falls squarely into the category which the World Bank classifies as ‘upper middle-income’ developing economies, with G.N.P. per capita in 1982 ranging from $2,000 to $7,000 and averaging $2,500, thereby including South Africa, with $2,700.1 (By contrast, Kenya's G.N.P. per capita was $400 and Britain's $10,000). The World Bank's group includes Algeria, Argentina, Brazil, Chile, Mexico, South Korea, Venezuela, and Yugoslavia. South Africa shares many structural economic characteristics with these semi-industrialised countries.


2020 ◽  
Vol 20 (1) ◽  
Author(s):  
Frank Götmark ◽  
Malte Andersson

Abstract Background The world population is expected to increase greatly this century, aggravating current problems related to climate, health, food security, biodiversity, energy and other vital resources. Population growth depends strongly on total fertility rate (TFR), but the relative importance of factors that influence fertility needs more study. Methods We analyze recent levels of fertility in relation to five factors: education (mean school years for females), economy (Gross Domestic Product, GDP, per capita), religiosity, contraceptive prevalence rate (CPR), and strength of family planning programs. We compare six global regions: E Europe, W Europe and related countries, Latin America and the Caribbean, the Arab States, Sub-Saharan Africa, and Asia. In total, 141 countries are included in the analysis. We estimate the strength of relationships between TFR and the five factors by correlation or regression and present the results graphically. Results In decreasing order of strength, fertility (TFR) correlates negatively with education, CPR, and GDP per capita, and positively with religiosity. Europe deviates from other regions in several ways, e.g. TFR increases with education and decreases with religiosity in W Europe. TFR decreases with increasing strength of family planning programs in three regions, but only weakly so in a fourth, Sub-Saharan Africa (the two European regions lacked such programs). Most factors correlated with TFR are also correlated with each other. In particular, education correlates positively with GDP per capita but negatively with religiosity, which is also negatively related to contraception and GDP per capita. Conclusions These results help identify factors of likely importance for TFR in global regions and countries. More work is needed to establish causality and relative importance of the factors. Our novel quantitative analysis of TFR suggests that religiosity may counteract the ongoing decline of fertility in some regions and countries.


2020 ◽  
Vol 36 (Supplement_1) ◽  
pp. S338-S358 ◽  
Author(s):  
Christopher Adam ◽  
Mark Henstridge ◽  
Stevan Lee

Abstract The COVID-19 pandemic is ripping around most of the world, but not in Africa; at least, not yet. At the same time, the policy response is remarkably uniform: most of sub-Saharan Africa went into lockdown from the second week in March. What happens next for the pandemic across Africa is uncertain, but the March lockdowns are unlikely to have contained the epidemic by themselves. What is clear is that the combination of domestic lockdowns and the spill-over from the global recession means immediate and severe hardship. This paper looks beyond the public health aspects of the pandemic to examine the medium-term macroeconomic adjustment challenge confronting domestic policy-makers and international donors. We combine epidemiological and macroeconomic models to calibrate the scale of the combined shock to a representative low-income African economy and to show how alternative policy options for slowing transmission of COVID-19 impact on public revenue, and on GDP in the short run, and hence shape the path to recovery. Noting that the first lockdown, however costly, does not by itself eliminate the likelihood of a re-emergence of the epidemic, we then frame the agenda for key macroeconomic and public finance policies to sustain recovery, growth, and poverty reduction in sub-Saharan Africa. The initial hit to consumption will be up to one-third. All the public policy options are grim. International donor finance of US$40–50 billion, together with domestic reform to accelerate recovery, would make a significant difference to the outlook for poverty.


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