Re-examining the environmental kuznets curve hypothesis in the economic community of West African states: A panel quantile regression approach

This study investigates the validity of the Environmental Kuznets Curve (EKC) hypothesis for six West African countries over 1970–2017 while using human capital and biocapacity as additional determinants of carbon emissions. It uses the panel quantile regression method that provides robust results in case the classical econometric assumptions fail. The empirical results revealed that a U-shaped relationship between economic growth and Carbon dioxide (CO2) emissions holds in the low, middle and high-emissions countries as opposed to the inverted U-shaped EKC hypothesis. Trade openness reduces environmental performance in low-emission countries. Financial development has mixed impacts on CO2 emissions across the quantiles. While financial development enhances environmental quality in the low-emissions countries, it exerts a detrimental impact in the middle and high-emissions countries. Human capital has significantly positive effects on the lower, middle and upper quantiles. The obtained results highlight the need for raising environmental awareness and promoting green R&D. In addition, relevant incentives are required to redirect private credits towards green projects and renewable energy development.