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The role of globalization in modulating the effect of environmental degradation on inclusive human development

Simplice AsonguDepartment of Economics, University of South Africa, Pretoria, South AfricaNicholas M. OdhiamboDepartment of Economics, University of South Africa, Pretoria, South Africa
2020en
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This study assesses how globalization modulates the effect of environmental degradation on inclusive human development in 44 countries in Sub-Saharan Africa. First, a trade openness (imports + exports) threshold of between 80 and 120% of GDP is the maximum level required for trade openness to effectively modulate CO2 emissions (metric tonnes per capita) and induce a positive effect on inclusive human development. Second, a minimum threshold required for trade openness to modulate CO2 intensity (kg per kg of oil-equivalent energy use) and induce a positive effect on inclusive human development is 200% of GDP. Third, there is a net positive effect on inclusive human development from the relevance of trade openness in modulating the effect of CO2 emissions per capita on inclusive human development and a negative net effect on inclusive human development from the importance of trade openness in moderating the effect of CO2 intensity on inclusive human development.

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