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)
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