Inclusive Growth, Green Investment and Carbon Emission in Sub-Saharan Africa

Purpose: This study seeks to investigate the differential effect of inclusive growth on carbon emissions in sub-Saharan Africa. The study further seeks to ascertain the moderating effect of green investment in the inclusive growth-carbon emissions nexus between 2000 and 2020. Design/Methodology/Approach: By taking into account the slope heterogeneity and dependence amongst the cross-sections, the study employs the (Driscoll and Kraay, Rev Econ Stat 80:549–560, 1998) and (Machado and Silva, Journal of Econometrics 213:145–173, 2019) Method of Moments Panel Quantile Regression estimation techniques. The data used in the study were mainly sourced from the World Bank World Development Indicator (WDI). Findings: The study findings showed that inclusive growth exacerbates carbon emissions in sub-Saharan Africa while green investment seems effective in mitigating the influence of inclusive growth on carbon emissions in sub-Saharan Africa. Practical Implications: The study findings have considerable policy implications in advocating for more green investment in sub-Saharan Africa. Social Implications: Mitigating carbon emissions in sub-Saharan Africa is very essential for the attainment of the potential of the region. The moderating role of green investment in the inclusive growth-carbon emissions nexus cannot be underestimated. Sub-Saharan Africa should concentrate more on promoting green investment in order to achieve her goal of reducing carbon emissions in the region. Originality and Value: This study have implications for policy makers and researchers who are concerned with mitigating carbon emissions. The complementary effects of green investment in the growth-carbon emissions nexus should redirect energy investment from non-green investment to green investment in sub-Saharan Africa.