Trade and environmental pollution in Africa: accounting for consumption and territorial-based emissions

Abstract

AbstractThis paper employs a recently constructed consumption-based carbon dioxide emissions data in which emissions computations are made based on fossil fuel usage domestically, in addition to emissions emanating from imports minus exports. We contrast this measure with the commonly measured territory-based carbon dioxide emissions data and examine how trade performance (split into imports, exports, and total trade) impacts these two measures of carbon dioxide. We focus on 22 sub-Saharan African countries over the period 1995–2014. Employing the system generalized method of moments, we find trade to generally have positive effect on emissions. The results are consistent across the different measures of trade and carbon dioxide emissions. The results of the paper allow us to give some policy suggestions regarding carbon dioxide emissions in sub-Saharan Africa.