Environmental degradation and inclusive human development in sub‐Saharan Africa

Abstract In the light of challenges to sustainable development in the post‐2015 development agenda, this paper assesses how increasing carbon dioxide (CO 2 ) emissions affect inclusive human development in 44 countries in sub‐Saharan Africa for the period 2000–2012. The following findings are established from Fixed Effects and Tobit regressions: first, unconditional effects and conditional impacts are respectively positive and negative from CO 2 emissions per capita, CO 2 emissions from liquid fuel consumption, and CO 2 intensity. This implies a Kuznets‐shaped curve because of consistent decreasing returns; and second, the corresponding net effects are consistently positive. The following findings are apparent from Generalized Method of Moments regressions: first, unconditional effects and conditional impacts are respectively negative and positive from CO 2 emissions per capita, CO 2 emissions from liquid fuel consumption, and CO 2 intensity. This implies a U‐shaped curve because of consistent increasing returns; and second, the corresponding net effects are overwhelmingly negative. Based on the robust findings and choice of best estimator, the net effect of increasing CO 2 emissions on inclusive human development is negative. Policy implications are discussed.