- Title
- Impact of climate finance on environmental quality in Sub-Sahara Africa
- Creator
- Doku, Isaac
- Subject
- Climatic changes -- Economic aspects
- Subject
- Economic development -- Environmental aspects Macroeconomics -- Econometric models
- Date Issued
- 2020
- Date
- 2020
- Type
- Thesis
- Type
- Doctoral
- Type
- PhD
- Identifier
- http://hdl.handle.net/10948/50513
- Identifier
- vital:42206
- Description
- Most climate finances available to Sub-Sahara Africa countries tries to assist governmental and non-governmental institutions decarbonise by reducing greenhouse gases or promote conservation of forests through REDD+ programs. On that backdrop, three main general objectives arises for this study; (1) to examine the impact of climate finance on greenhouse gas emissions (2) To find the impact of climate finance on deforestation in Sub-Sahara Africa (3) To determine the major recipient characteristics that attracts more climate finance to Sub-Sahara Africa. The first general objective looked at three greenhouse gas variables; carbon emission, methane and nitrous oxide emission. Data was analysed using system GMM for all countries in Sub-Sahara Africa for the period 2006-2017 based on data availability. The first general objective of the study employed system GMM robust standard errors and triangulates the result by using DOLS and FMOLS for robustness check. The findings show that climate finance is not reducing nitrous oxide, methane and total greenhouse gas emissions into the atmosphere, whereas carbon emission showed mixed results. System GMM results affirmed the existence of EKC, but DOLS and FMOLS results gave a contradictory finding. Based on that, we cannot conclude the existence of EKC for our studies. Energy consumption showed a positive significant impact on carbon, methane and total greenhouse gas for all three models in accordance to prior studies and affirming pollution haven hypothesis, but a mixed result for nitrous oxide. Finally, the findings from governance readiness showed governments in Africa’s unwillingness to reduce carbon but very keen in reducing the other greenhouses gases for all three models. Existence of pollution haven hypothesis shows that more hazardous and dirty investments are moving from developed countries to developing countries with less strict environmental rules like Sub-Sahara Africa. The second and third general objectives of the study employed system-GMM estimation technique to take care of time series variations in the data, as well as capture the unobserved country-specific time-invariant effect. Three and four stages hierarchical regressions are carried out for objectives two and three respectively and a panel quantile regression is employed to test sensitivity of the results for both analysis. The findings for objective two showed that increase in climate climate finance increases deforestation in two models and one model showing a decrease in deforestation, making the result very difficult to interpret and mixed. The study did not also get support for EKC but indicated that forest transition curve is rather U-shaped for all countries in Sub-Sahara Africa and two sub-regional blocks; EAC and CEMAC. Population growth and agricultural land use have been found to be major drivers of deforestation. Most of the governance indicators showed adverse impact on deforestation. The result for objective three indicates that Sub-Sahara African countries with high population growth rate, higher poverty levels, better ease of doing business profile, weaker governance policies, weaker control of corruption, stronger rule of law enforcement, deepened social inequality and better ICT usage have attracted more climate finance. Based on that, we recommend Africa countries to strengthen their practice of rule of law and more stringent rules to prevent or minimize corruption in the system. Climate finance managers should also undertake rigorous monitoring and supervision when funds are extended to reduce misappropriation of funds by recipients.
- Format
- xiv, 183 leaves
- Format
- Publisher
- Nelson Mandela University
- Publisher
- Faculty of Business and Economic Sciences
- Language
- English
- Rights
- Nelson Mandela University
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