Environmental performance and economic growth in the West African economies

The importance of sustainable economic growth has been emphasized by the United Nations Sustainable Development Goals (SDG). SDGs 8 and 11 suggest that a sustainable environment can improve economic growth, which has been the priority for some governments worldwide. This study incorporates the environmental performance index (EPI) into the neoclassical growth model to examine the impact of environmental performance on economic growth for the Economic Community of West African States (ECOWAS). Using the two-step generalized method of moments (GMM) model, the empirical investigation finds a positive relationship between environmental performance and economic growth. More specifically, we find that improved environmental performance is observed to accelerate economic growth in non-oil-producing ECOWAS countries, but diminishes growth in oil-producing ECOWAS countries. Based on the findings, we recommend policies that encourage improved environmental performance in non-oil-producing ECOWAS economies.