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Addressing the Environmental Kuznets Curve in the West African Countries: Exploring the Roles of FDI, Corruption, and Renewable Energy

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Abstract

Environmental degradation and economic growth are two intricately related issues whose impact is in constant increase within a global context marked by climate risks and corruption, notably in certain African countries. This research work examines the impacts of economic growth, corruption, renewable energy, and foreign direct investment on carbon dioxide emissions for a set of West African economies between 1990 and 2020. The current paper uses the PMG-ARDL panel method in order to assess the relationships between the various variables invested. The results are indicative of the long-term effects of variables. These findings demonstrate that GDP per capita has a positive and significant effect on CO2 emissions, and that the Kuznet curve is not validated in this case. Moreover, FDI confirms the pollution heaven hypothesis as it reduces environmental quality in the long run. In contrast, renewable energy consumption and control corruption in West African countries constitute significant factors in the fight for environmental quality. The causality outcomes reveal that there exist one way of unidirectional link between CO2 to both income and corruption, and a one direction causality from FDI to CO2 emissions. Meanwhile, the link between renewable energy and CO2 emissions is neutral. In this respect, this research offers outstanding findings to help maintain influential procedures for environmental sustainability within the West African framework.

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Authors and Affiliations

  1. University of Sfax, Tunisia, Higher Institute of Business Administration of Sfax, Laboratory of Probability and Statistics - PB 1171, Sfax, Tunisia

    Lobna Abid & Sana Kacem

  2. University of Sfax, Tunisia, Higher Institute of Business Administration of Sfax, Laboratory of Governance, Finance and Accounting-LR 13ES19, Sfax, Tunisia

    Haifa Saadaoui

  3. University of Sfax, Tunisia, Faculty of Economics and Management of Sfax, LED, Tunisia, Sfax

    Lobna Abid

  4. Sfax, Tunisia

    Sana Kacem

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Abid, L., Kacem, S. & Saadaoui, H. Addressing the Environmental Kuznets Curve in the West African Countries: Exploring the Roles of FDI, Corruption, and Renewable Energy. J Knowl Econ (2024). https://doi.org/10.1007/s13132-024-01858-4

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