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This paper investigates whether trade liberalization affects environmental quality (proxied by CO2 emissions) and, if so, whether the trade-induced emissions originate from differences in countries' economic growth, factor endowment or environmental regulations. We used panel data on 30 African countries and the Generalized Method of Moment estimation techniques. Though we found that trade openness is associated with elevated levels of CO2 emissions due to comparative advantage originating from factor endowment (i.e. composition effect), the overall effects of trade are seen to have some beneficial effects on environmental quality. Also, relative economic growth lowers emissions (scale effect) perhaps due to technology transfer. Furthermore, the differences in environmental regulations do not directly affect CO2 emissions while past levels of CO2 emissions significantly increase the current level due to the cumulative effect of CO2 emissions. To achieve a significant reduction in emissions, environmental regulations must be enforced in tandem with growth enhancing and production technology choice policies. [ABSTRACT FROM AUTHOR]

Since 1990 carbon dioxide emissions in Africa have increased by about 50%. The total carbon dioxide emissions of the entire African continent are not, however, anywhere near those of countries such as India or China. Yet certain African countries have per capita emissions comparable to some European countries. What is the outlook for Africa? How should African countries respond as it becomes increasingly likely that climate change is occurring? Increased industrial growth and more foreign investment in Africa, especially in countries that are politically and economically stable, have led to huge commercial developments such as the In Salah gas project in Algeria, which releases more than a million tons of carbon dioxide annually; and synthetic fuel plants and power stations in South Africa that generate more than 350 million tons per year. In this perspective should some African countries be required to limit greenhouse gas emissions or should they be immune to 'environmental taxation'? This paper critically reviews the carbon dioxide problem in some parts of Africa and its role in climate change. [ABSTRACT FROM AUTHOR]