Urbanisation and CO2 Emissions in Africa: do Governance Matter?

Abstract

This paper determines how good governance complements or counteracts urbanisation in the fight of environmental degradation, including the reduction of CO2 emissions, for 45 African countries over the period 2000-2014. Governance is measured through the six dimensions of the Kaufman governance indicators. Urbanisation is assessed by the urbanisation rate, which refers to the urban population as a proportion of the total population. The empirical evidence is based on the two-stage generalized method of moments (GMM), which eliminates simultaneity bias and considers cross-country variations. Overall, the results show that good governance has a significant effect on reducing CO2 emissions. It is a means to mitigate the potential effect of urbanisation on environmental degradation. The results recommend that governance must be consider in urbanisation policies to achieve a clean environment.(original abstract)