Governance, Corruption and Environmental Kuznet's Curve for Deforestation in the Sub-Saharan Africa
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Date
2009-06
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A.A.U
Abstract
Environmental Kuznet's Curve hypothesis an argument stating that development has an
inverted 'U' shaped relationship with environmental quality. At early stages of development
the damage to the environment is higher but as development proceeds and as people reach a
certain threshold level of pe~ capita income more concern will be given to improvement of
environmental quality. The main aim of such kind of studies is to find a development path
where less damage to the environment is done. This study tries to look the presence of EKC
relationship for deforestation. Further the study tries to analyze the role institutional setups in
the EKC relationship form 1995 to 2005 in the Sub-Saharan Africa. In the study the
researcher has used 33 countries as a sample. The researcher used the panel data analysis
because of its advantage of incorporating both time series and cross sectional dimensions. The
study has found that EKC hypothesis holds for deforestation in the region. Turning point with
per capita income which is higher than the current level of most of the countries in the region
implying that more damage is going to happen to the resource before improvement comes.
Moreover, the study has found that governance plays an important role in deforestation
process having a negative relationship with it. The study results imply that good governance
may result in a turning point which can result in less damage to the environment.
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Keywords
Environmental Kuznet's, SubSaharan Africa