Achieving sustainability: Unravelling the role of financial development and foreign direct investment in sub‐Saharan Africa

IF 3.5 4区社会学 Q2 ENVIRONMENTAL SCIENCES

Natural Resources Forum Pub Date : 2024-07-19 DOI:10.1111/1477-8947.12518

Kyei Emmanuel Yeboah, Kashif Abbass, Seidu Abdulai Jamatutu, Bo Feng, Junwen Feng

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引用次数: 0

Abstract

As the global community grapples with sustainable development, sub‐Saharan Africa (SSA) faces a critical dilemma in balancing economic growth and environmental preservation. The study examines the effect of financial development (foreign direct investment [FDI]) on CO2 emissions in achieving sustainability in SSA. The study employed fully modified ordinary least square (FMOLS) and dynamic ordinary least square (DOLS) cointegration approaches, to establish substantial connections between key variables. The results showed that environmental taxes and FDI play a role in reducing carbon emissions. Trade openness, natural resource rent, and consumption cause carbon emissions to rise. Furthermore, the study explores causation between variables using Dumitrescu–Hurling panel causality tests. A bidirectional causality exists between ecological footprint and CO2 emissions while a unidirectional causality exists between financial development, FDI, and CO2 emissions. The findings suggest the adoption of enhanced environmental taxation policies and the encouragement of sustainable FDI. We further recommend the introduction of green fiscal policies to stimulate renewable energy investments, promote responsible consumption and trade practices, and green innovative financing.

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实现可持续性：揭示撒哈拉以南非洲金融发展和外国直接投资的作用

在全球社会努力实现可持续发展之际，撒哈拉以南非洲（SSA）在平衡经济增长与环境保护之间面临着严峻的困境。本研究探讨了金融发展（外国直接投资 [FDI]）对撒哈拉以南非洲实现可持续发展过程中二氧化碳排放的影响。研究采用了完全修正的普通最小二乘法（FMOLS）和动态普通最小二乘法（DOLS）协整方法，以建立关键变量之间的实质性联系。结果表明，环境税和外国直接投资在减少碳排放方面发挥了作用。贸易开放度、自然资源租金和消费会导致碳排放量上升。此外，研究还利用 Dumitrescu-Hurling 面板因果检验探讨了变量之间的因果关系。生态足迹与二氧化碳排放之间存在双向因果关系，而金融发展、外国直接投资与二氧化碳排放之间存在单向因果关系。研究结果表明，应采取强化的环境税收政策，鼓励可持续的外国直接投资。我们还建议引入绿色财政政策，以刺激可再生能源投资，促进负责任的消费和贸易行为，以及绿色创新融资。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

Natural Resources Forum 环境科学-环境科学

CiteScore

6.10

自引率

0.00%

发文量

审稿时长

>36 weeks

期刊介绍： Natural Resources Forum, a United Nations Sustainable Development Journal, focuses on international, multidisciplinary issues related to sustainable development, with an emphasis on developing countries. The journal seeks to address gaps in current knowledge and stimulate policy discussions on the most critical issues associated with the sustainable development agenda, by promoting research that integrates the social, economic, and environmental dimensions of sustainable development. Contributions that inform the global policy debate through pragmatic lessons learned from experience at the local, national, and global levels are encouraged. The Journal considers articles written on all topics relevant to sustainable development. In addition, it dedicates series, issues and special sections to specific themes that are relevant to the current discussions of the United Nations Commission on Sustainable Development (CSD). Articles must be based on original research and must be relevant to policy-making. Criteria for selection of submitted articles include: 1) Relevance and importance of the topic discussed to sustainable development in general, both in terms of policy impacts and gaps in current knowledge being addressed by the article; 2) Treatment of the topic that incorporates social, economic and environmental aspects of sustainable development, rather than focusing purely on sectoral and/or technical aspects; 3) Articles must contain original applied material drawn from concrete projects, policy implementation, or literature reviews; purely theoretical papers are not entertained.