Luqman Afolabi, Patrick Efe Ejumedia, Adebunmi Olusola Oduyoye-Ejumedia, Richard Kabanda, Nnamdi O Madichie
{"title":"Unravelling the Link Between Bilateral Investment Treaties and Environmental Sustainability in Sub-Saharan African Countries","authors":"Luqman Afolabi, Patrick Efe Ejumedia, Adebunmi Olusola Oduyoye-Ejumedia, Richard Kabanda, Nnamdi O Madichie","doi":"10.1177/09750878241241792","DOIUrl":null,"url":null,"abstract":"This study investigates the practical relationship between foreign direct investments (FDI), bilateral investment treaties (BITs), income, energy consumption and CO<jats:sub>2</jats:sub> emissions in sub-Saharan African (SSA) countries between 2000 and 2020. To address the challenges of heterogeneity, non-stationarity and cross-sectional dependence, we employed the dynamic common-correlated effects estimation method introduced by Chudik and Pesaran. This methodology provides reliable results for panel datasets of significant to moderate size. The results indicate a direct connection between FDI and CO<jats:sub>2</jats:sub> emissions, providing evidence for the pollution haven theory. Notably, BITs also have a favourable and substantial impact on environmental degradation in SSA countries. These findings emphasise the need for effective environmental regulatory frameworks and management techniques. Achieving sustainable growth and economic development in SSA countries requires prioritising the adoption and implementation of carbon reduction strategies. SSA countries can attain balanced growth between economic progress and environmental preservation by reducing the negative effects of FDI inflows and BITs on environmental sustainability. This study expands the current knowledge base by providing insights into the complex relationship between FDI inflows, BITs, income, energy consumption and CO<jats:sub>2</jats:sub> emissions in SSA countries. The findings offer valuable guidance to policymakers and stakeholders in formulating and executing effective environmental policies and regulations to promote sustainable development in the area.","PeriodicalId":42199,"journal":{"name":"Insight on Africa","volume":null,"pages":null},"PeriodicalIF":0.8000,"publicationDate":"2024-05-28","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":"0","resultStr":null,"platform":"Semanticscholar","paperid":null,"PeriodicalName":"Insight on Africa","FirstCategoryId":"1085","ListUrlMain":"https://doi.org/10.1177/09750878241241792","RegionNum":0,"RegionCategory":null,"ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":null,"EPubDate":"","PubModel":"","JCR":"Q2","JCRName":"AREA STUDIES","Score":null,"Total":0}
引用次数: 0
Abstract
This study investigates the practical relationship between foreign direct investments (FDI), bilateral investment treaties (BITs), income, energy consumption and CO2 emissions in sub-Saharan African (SSA) countries between 2000 and 2020. To address the challenges of heterogeneity, non-stationarity and cross-sectional dependence, we employed the dynamic common-correlated effects estimation method introduced by Chudik and Pesaran. This methodology provides reliable results for panel datasets of significant to moderate size. The results indicate a direct connection between FDI and CO2 emissions, providing evidence for the pollution haven theory. Notably, BITs also have a favourable and substantial impact on environmental degradation in SSA countries. These findings emphasise the need for effective environmental regulatory frameworks and management techniques. Achieving sustainable growth and economic development in SSA countries requires prioritising the adoption and implementation of carbon reduction strategies. SSA countries can attain balanced growth between economic progress and environmental preservation by reducing the negative effects of FDI inflows and BITs on environmental sustainability. This study expands the current knowledge base by providing insights into the complex relationship between FDI inflows, BITs, income, energy consumption and CO2 emissions in SSA countries. The findings offer valuable guidance to policymakers and stakeholders in formulating and executing effective environmental policies and regulations to promote sustainable development in the area.
期刊介绍:
nsight on Africa is a biannual peer-reviewed academic journal covering contemporary African affairs and issues of policy relevance. It focuses on, though not confined to, foreign policies and developmental issues of African countries. The journal specially encourages article submission on issues related to emerging powers in Africa, BRICS in Africa and Afro-Asian relations. The journal is owned by African Studies Association of India (ASA India) located at Centre for African Studies, Jawaharlal Nehru University, New Delhi and its publication is managed by Policy Research Institute of African Studies Association (PRIASA) based in New Delhi.