Volume( 13) - Issue( 1) 2022 pp 36-48 DOI: -

PER CAPITA INCOME AND ENVIRONMENTAL QUALITY IN ECOWAS: EMPIRICAL EVIDENCE BASED ON PANEL REGRESSION

Title

PER CAPITA INCOME AND ENVIRONMENTAL QUALITY IN ECOWAS: EMPIRICAL EVIDENCE BASED ON PANEL REGRESSION

Abstract

This study examines the effect of income per capita on environmental quality for the ECOWAS region. Using panel data spanning 2005 to 2016, the study estimates the effect of income per capita on environmental quality measured by CO2 emission and ecological footprint. Using CO2 emission and ecological footprint as indicators of environmental quality respectively in the fixed effect model and individual effect model with first-order autoregression disturbances, there is evidence that while income per capita increases poor  environmental quality at the initial stage of growth, its squared term impede poor environmental quality in ECOWAS region. Thus, it can be concluded that there is presence of U-shaped EKC in ECOWAS from 2005 to 2016. Therefore, it is recommended that the redistribution of wealth or income should be effectively regulated to ensure that all income categories invest or utilise clean energy resources in order to promote environmental sustainability. Also, it is suggested that since consumption of energy is an important determinant of environmental quality especially in the developing regions like ECOWAS where fossil fuels dominate the energy mix of the population, effective policies that redirect energy consumptions towards clean energy resources will strengthen the environmental quality.

Keywords

Income per capita; Carbon Emission; Ecological Footprint; Energy Consumption; EKC