The Impact of Carbon Emission (co2) on Economic Growth: Evidence from Sub-Saharan Africa

The main aim of this paper is to investigate the impact of carbon dioxide (CO2) emissions on the economic growth of sub-Saharan Africa (SSA). The paper employed Generalized Method of Moments (GMM) to examine the relationships between CO2 and economic growth of sub-Saharan Africa. The study used panel data from 1981 to 2020 that was extracted from World Bank database for 45 countries in SSA. The study findings indicate that CO2 significantly impacts the economic growth of sub-Saharan Africa. Furthermore, the study shows that foreign direct investment (FDI), Gross Fixed Capital Formulation (GFCF), Unemployment (UMP), and Official development assistance (ODA) have a significant impact on economic growth of SSA. Based on the findings, it is suggested that despite the fact CO2 have mixed findings in previous literature, this study adds new insight into that CO2 was found to positively influence economic growth of SSA.