TITLE:
Testing the Nexus between Official Development Assistance, Governance Quality and CO2 Emissions: Fresh Evidence from Sub-Saharan African Countries
AUTHORS:
Samia Gmidène, Saida Zaidi, Olfa Chouikha
KEYWORDS:
Official Development Assistance, Governance Quality, CO2 Emissions, Sub-Saharan African Countries, ARDL
JOURNAL NAME:
Open Journal of Business and Management,
Vol.12 No.5,
September
30,
2024
ABSTRACT: The aim of this paper is to explore the nexus between official aid assistance, governance quality and CO2 emissions. The study used the pooled mean group ARDL estimator used for a panel of 45 Sub-Saharan African countries (expecting Somalia and Eretria) over the period 2006-2022. Composite indexes of governance are used (political, economic and institutional governance). The empirical methodology is based on cross-sectional dependence and regressions analysis using second-generation analysis techniques. We use the pooled mean group ARDL estimator as the regression analysis technique to examine e short-run and long-run relationship. Results indicate that official development assistance decreases environmental damages for SSA countries. In addition, good governance and official aid assistance can play a crucial role in combating climate change in sub-Saharan countries. Therefore, effective governance and adequate financial support are essential to help sub-Saharan African countries reduce their CO2 emissions and adapt to the impacts of climate change, while pursuing sustainable economic development.