The role of environmental policy in reducing ecological damage’s economic consequences acrossSub-Saharan Africa

What the paper says

Purpose Sub-Saharan Africa faces a critical paradox. The region contributes minimally to global emissions. Nevertheless, it bears disproportionate climate vulnerabilities and pursues rapid economic development to address infrastructure and poverty deficits. This tension necessitates an investigation into the interaction between environmental sustainability, economic growth and environmental regulation within the Sub-Saharan African context. The purpose of this study is to empirically examine the moderating role of environmental regulation in the relationship between environmental sustainability and economic growth. Design/methodology/approach This study analysed panel data (2000–2023) across 48 Sub-Saharan African countries. This paper uses partial least squares structural equation modelling to examine direct and moderating effects. This study’s assumptions were grounded in the Environmental Kuznets Curve, ecological modernisation and institutional theories. Findings Contrary to expectations, the findings of this study indicate that environmental sustainability adversely affects economic growth. This finding suggests that the current development trajectories in Sub-Saharan Africa are ecologically unsustainable. However, environmental regulations mitigate this adverse effect. This finding illustrates the importance of institutional quality. Research limitations/implications This study’s focus on CO2 emissions as the primary sustainability proxy excludes other critical ecological dimensions. The other dimensions include biodiversity loss, water stress and soil degradation. Data constraints prevented the authors from analysing those dimensions systematically across the region. Practical implications This study provides policy interventions for regulatory reform and institutional strengthening in the pursuit of inclusive sustainable growth in one of the world’s most climate-vulnerable regions. Specifically, global and regional policymakers should perceive environmental regulation as an economic instrument. This instrument is capable of influencing growth trends. They should integrate environmental sustainability into national development planning, budget frameworks and industry policies. This implication is particularly relevant in areas such as energy, agriculture and infrastructure. They should also address the weak implementation of the Paris Agreement regarding financing for Africa. They should also address the ethical imbalances in global climate change financing in Africa. Originality/value This study challenges the optimistic interpretation of the Environmental Kuznets Curve. This paper suggests that without robust institutional frameworks, environmental degradation will continue to impede economic growth, advancing both ecological modernisation and institutional theories. This study uses evidence from an understudied region, Sub-Saharan Africa, revealing the region’s income inequality peculiarities.