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<p>The rapid economic growth and increasing energy consumption in Africa have led to higher emissions, necessitating urgent and sustainable strategies. This study examines the nexus between environmental taxation, energy consumption, technological progress, economic growth, and CO₂ emissions. Using balanced panel data from 2000–2019 of 10 Sub-Saharan African (SSA) countries, Quantile Autoregressive Distributed Lag (QARDL) and GMM estimations were applied to capture both distributional heterogeneity and dynamic endogeneity. The QARDL results disclose that environmental taxes significantly reduce CO<sub>2</sub> emissions in the middle and higher quantiles, while a 1% surge in environmental tax reduces emissions by 0.3% in GMM. Contrary, technological advancement shows long-term potential for emission reduction in GMM estimates. Energy consumption and GDP growth increase emissions consistently across all quantiles, with the GMM estimations signifying that a 1% rise in GDP increases emissions by about 2%, defying the Environmental Kuznets Curve hypothesis. The findings emphasize the role of fiscal mechanisms in achieving a double dividend by lowering emissions while improving economic efficiency. These highlight the implementation of progressive environmental taxation with targeted incentives for low emitters, improved regional R&amp;D investment in renewable energy technologies, regular ex-post assessments of technological adoption, and stringent efficiency standards for energy-intensive areas.</p>

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The interplay of environmental taxes, energy consumption and economic growth: A decarbonization pathway towards sustainable development

  • 期刊论文

  • 发表日期：

    2026年1月5日

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  • Kyei Emmanuel Yeboah,
  • Bo Feng,
  • Seidu Abdulai Jamatutu,
  • Felicia Esi Nyarko,
  • Nsafoa Duah Justice

摘要

The rapid economic growth and increasing energy consumption in Africa have led to higher emissions, necessitating urgent and sustainable strategies. This study examines the nexus between environmental taxation, energy consumption, technological progress, economic growth, and CO₂ emissions. Using balanced panel data from 2000–2019 of 10 Sub-Saharan African (SSA) countries, Quantile Autoregressive Distributed Lag (QARDL) and GMM estimations were applied to capture both distributional heterogeneity and dynamic endogeneity. The QARDL results disclose that environmental taxes significantly reduce CO2 emissions in the middle and higher quantiles, while a 1% surge in environmental tax reduces emissions by 0.3% in GMM. Contrary, technological advancement shows long-term potential for emission reduction in GMM estimates. Energy consumption and GDP growth increase emissions consistently across all quantiles, with the GMM estimations signifying that a 1% rise in GDP increases emissions by about 2%, defying the Environmental Kuznets Curve hypothesis. The findings emphasize the role of fiscal mechanisms in achieving a double dividend by lowering emissions while improving economic efficiency. These highlight the implementation of progressive environmental taxation with targeted incentives for low emitters, improved regional R&D investment in renewable energy technologies, regular ex-post assessments of technological adoption, and stringent efficiency standards for energy-intensive areas.