University of Tasmania
2021-05_Musibau_Yanotti_Vespignani_Nepal.pdf (1.36 MB)

Environmental performance in the West African economy: MM-quantile and 2SLS approach

Download (1.36 MB)
posted on 2023-05-28, 00:21 authored by Hammed Musibau, Maria YanottiMaria Yanotti, Joaquin VespignaniJoaquin Vespignani, Nepal, R
The 2019 World Bank report on West Africa's coast indicates that over $3.8 billion is lost annually due to environmental issues, like erosion, flooding, and pollution. In this paper, the newly introduced environmental performance index (EPI) is incorporate into the neoclassical growth model to empirically address the impact of environmental performance on economic growth for the Economic Community of West African States (ECOWAS). Using the novel Method of Moments-Quantile Regression methodology and 2SLS models, the empirical investigation finds a positive relationship between environmental performance and economic growth across quantiles for ECOWAS. Empirical results provide evidence supporting bidirectional relationship running from environmental performance to economic growth; from government size to economic growth; and from trade openness to economic growth across all quantiles. Results show that environmental performance, government size, labour, and capital stock have a positive impact on West African Economic Growth, while trade openness decreases economic growth. We find a 48% optimal threshold of environmental performance index (EPI) on economic Growth for ECOWAS countries. Based on the findings, policies to encourage improved environmental performance above the threshold estimated will go a long way to enhance West African economies.



University of Tasmania

Publication status

  • Published

Place of publication


Rights statement

Copyright 2021 University of Tasmania Discussion Paper Series N 2021-05 JEL Classification: F43, F64, C31

Repository Status

  • Open

Usage metrics

    University Of Tasmania


    No categories selected


    Ref. manager