Economic development thresholds for a green economy in sub-Saharan Africa

This study investigates how increasing economic development affects the green economy in terms of CO2 emissions, using data from 44 countries in the sub-Saharan Africa for the period 2000-2012. The Generalized Method of Moments is used for the empirical analysis. The following main findings are established. First, relative to CO2 emissions, enhancing economic growth and population growth engenders a U-shaped pattern whereas increasing inclusive human development shows a Kuznets curve. Second, increasing gross domestic product growth beyond 25% of annual growth is unfavorable for a green economy. Third, a population growth rate of above 3.089% (i.e. annual %) has a positive effect of CO2 emissions. Fourth, an inequality-adjusted human development index of above 0.4969 is beneficial for a green economy because it is associated with a reduction in CO2 emissions. The established critical masses have policy relevance because they are situated within the policy ranges of adopted economic development dynamics.