MACROECONOMIC DETERMINANTS OF CO2 EMISSIONS: EVIDENCE FROM SELECTED TOP AFRICAN COUNTRIES

Abstract

This research inspired by the growing threats to environmental quality examines the mitigating effects of information and communication technology (ICT) on carbon emissions of African leading economies. The ICT behaviour is essential for economic growth, but its environmental consequences cannot be underrated. As such the study contribute to the prevailing literature by examining the effect of ICT, economic growth, foreign direct investment, and financial development on the quality of environment from 1970 to 2019, in the study we considered 10 leading African countries. To achieve the given objective, the study applied the Pooled Mean Group (PMG) panel method of estimation to determine the long run as well as the short run dynamic relationship. The results of the study show that economic growth, financial development, and ICT have a positive and significant effect on carbon emissions while foreign direct investment is having a negative relationship with amount of carbon emissions. The study recommended that energy-efficient technologies should be applied not only at manufacturing level but also at transport and household levels. The implementation of environmentally sustainable technology would help improve the quality of the environment, increase sustainability in the long term and conserve resources for future generations.