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This paper empirically examines how the size of the shadow economy affects environmental quality in sub-Saharan Africa (SSA). We apply the autoregressive distributed lag (ARDL) methodology to a panel of 22 SSA countries over the 1991–2015 period. Findings show that there is a negative relationship between the size of the shadow economy (in percentage of GDP) and CO2 emission both in the long and short run. Also, the size of shadow economy is found to be inversely related to CO2 emission in the long run for all income groups, but this effect is statistically significant only within the subpanel of lower-middle-income countries. Consistent with the scale effect, our findings suggest that there is no evidence that the shadow economy increases environmental degradation in SSA. [ABSTRACT FROM AUTHOR]

• We test how ICT affects environmental quality in Sub-Saharan Africa. • ICT has a positive direct effect on CO 2 emissions. • ICT has an indirect effect on CO 2 emissions through energy consumption, trade openness and financial development. • The total effect of ICT on CO 2 emissions is positive. • Improvements in energy efficiency and adoption of green technologies could mitigate the effect of ICT on CO 2 emissions. This paper contributes to the literature on the relationship between information and communication technologies (ICT) and environmental quality. Despite a growing attention on the topic, existing studies have not yet investigated the channels through which ICT affects the environment. We use an extended Stochastic Impact by Regression on Population, Affluence and Technology model to estimate both the effect and the transmission channels of ICT on CO 2 emissions in 21Sub-Saharan African countries from 1996 to 2014. The empirical results show that ICT use - measured by mobile phone and internet penetrations - significantly stimulates CO 2 emissions. Moreover, the mediation analysis reveals that ICT does not only have a direct positive effect on CO 2 emissions, but also an indirect positive effect through its effect on energy consumption and financial development and an indirect negative effect through trade openness. However, the total effect is positive and indicates that ICT worsens environmental quality in SSA. Finally, we find an environmental Kuznets curve between economic growth and CO 2 emissions. To mitigate the adverse effects of ICT on environmental quality, governments should design policies to improve energy efficiency, promote the use of renewable energy and provide financial incentives for green technology development. [ABSTRACT FROM AUTHOR]