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How Does the Shadow Economy Affect Environmental Quality in Sub-Saharan Africa? Evidence from Heterogeneous Panel Estimations.
- Source :
- Journal of the Knowledge Economy; Dec2021, Vol. 12 Issue 4, p1635-1651, 17p
- Publication Year :
- 2021
-
Abstract
- 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 CO<subscript>2</subscript> emission both in the long and short run. Also, the size of shadow economy is found to be inversely related to CO<subscript>2</subscript> 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]
Details
- Language :
- English
- ISSN :
- 18687865
- Volume :
- 12
- Issue :
- 4
- Database :
- Complementary Index
- Journal :
- Journal of the Knowledge Economy
- Publication Type :
- Academic Journal
- Accession number :
- 153553894
- Full Text :
- https://doi.org/10.1007/s13132-020-00685-7