Let the Data Speak: Revisiting the Environmental Kuznets Curve in Africa

This paper revisits the Environmental Kuznets Curve hypothesis and applies a flexible semi-parametric panel fixed effects technique to identify a definite shape of the income-pollution relationship for a sample of 49 African countries for the period 1990-2010. Compared with standard panel data techniques which yield different conclusions, the former reveals that the income-pollution nexus is monotonically increasing and decreasing for CO2 and PM10 emissions respectively. Hence, the effect of economic growth differs with each atmospheric pollutant; and is not sufficient for improving environmental quality. There is need for policies that emphasizes sustainable economic growth and the use of cleaner energy sources.