Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/249073 
Year of Publication: 
2021
Series/Report no.: 
AGDI Working Paper No. WP/21/062
Publisher: 
African Governance and Development Institute (AGDI), Yaoundé
Abstract: 
The objective of this study is to evaluate: (i) the effects of infrastructures on CO2 emission and (ii) how trade openness and governance contribute to mitigating these effects. The results from the system GMM methodology for 36 African countries between the 2003-2019 period show that infrastructural development exacerbates CO2 emission in Africa. This result is robust across different types of infrastructural development indexes. When the indirect effect regressions are carried out by interacting governance and trade openness with the different infrastructural development variables, the following results are obtained. Firstly, infrastructural development interacts with governance producing a positive net effect, up to a governance threshold estimate of 0.532 when the positive net effect is nullified. Secondly, infrastructures interact with trade openness producing a negative net effect up to a trade openness threshold of 78.066914 (% of GDP) when the negative net effect is nullified. Positive and negative synergy effects are also apparent. Practical policy implications are discussed based on the results obtained.
Subjects: 
Infrastructures
CO2
trade openness
governance
Africa
System GMM
JEL: 
N67
N77
C23
Q56
Document Type: 
Working Paper

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