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Urbanization and CO2 emissions intensity in Africa

The pace of urbanization in the world will very quickly become a major problem for development in all its dimensions. This dynamic, also observed in Africa, could have serious consequences for macroeconomic and environmental balances. This paper examines the relationship between urbanization and the intensity of CO2 emissions on a panel of 48 African countries over the period 1980–2016. Using an augmented STIRPAT model, we found that if urbanization is a highly significant factor for pollution in Africa, the effect is heterogeneous for different levels of pollution. This effect is more pronounced in resource-rich countries; the difference in the quality of institutions helping to reinforce the heterogeneity. Additional tests reveal the existence of simultaneous threshold effects of pollution concerning urbanization and the level of development. Finally, the overall effect of urbanization on global warming is positive and significant. Based on these outcomes, we suggest a set of policies.