Does economic growth, international trade, and urbanization uphold environmental sustainability in sub-Saharan Africa? Insights from quantile and causality procedures

International trade and urbanization are increasing at an unprecedented rate in sub-Saharan Africa (SSA). The region has also witnessed a fair share of economic growth, with minimal investment and consumption of renewables. Therefore, this study investigates the influence of economic growth, international trade, and urbanization on CO₂ emissions in SSA. The current study enriches the existing literature by employing the panel quantile regression analysis to account for existing levels of CO₂ emissions in the region. Empirical findings reveal that GDP increases CO₂ emissions across quantiles, especially in countries where the existing level of CO₂ emissions is low. International trade improves environmental sustainability in countries where the existing levels of CO₂ emissions are at their lowest and highest levels but exacts a reversed impact on CO₂ emissions at the median. Further findings suggest that urbanization increases CO₂ emissions across the observed quantiles with a more pronounced effect in countries where the existing levels of CO₂ emissions are at its lowest level. The study also reveals a bi-directional causality between economic growth, international trade, urbanization, and the emissions of CO₂. The limitations of the study and possible direction for future research have been highlighted. Policy directions are discussed.

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