The influence of institutional quality on the environmental degradation in sub-Saharan Africa: Evidence from panel threshold model

Abstract

Abstract Human progress, poverty reduction, and environmental sustainability are core indicators target to be achieved by 2030. Substantial interaction resulting from anthropogenic activities with the intent of fostering prosperity is surging climate change. However, in order not to be entangled with the ubiquitous impending risk associated with human interactions and ecological risks, this study employed the Hansen (1999) threshold regression model to examine the existing differences between human progress and environmental quality owning to different levels of institutional quality by employing data from 2004 to 2019 in 32 sub-Saharan Africa countries. Using carbon dioxide as a measure of environmental degradation and poverty and human development as core explanatory variables, the empirical results confirmed evidence of pollution haven. Further, rule of law, effective governance and quality regulations prove to be an inhibitor of CO2 emissions even under the influence of activities to enhance human progress. The study suggests that efforts to elevate human progress need to be accompanied by strong governance, regulations and laws.