Strategic Environmental Commitment and Climate Change in Africa: Evidence on Mining and Deforestation

dc.contributor.authorAzomahou, Théophile T.
dc.contributor.authorOuédraogo, Mahamady
dc.date.accessioned2021-09-28T09:48:28Z
dc.date.available2021-09-28T09:48:28Z
dc.date.issued2021-09-28
dc.description.abstractThis paper addresses two issues on the link between mining, deforestation and environmental policy in Africa using a panel data of 35 African countries spanning over 2001-2017. First, we study the relationship between mining and deforestation. Our findings suggest that mining increases deforestation while environmental policy contributes to reduce deforestation in mineral resource-rich countries. An increase in mineral rent by a one-point percentage of GDP leads to forest loss of about 50 km2 . Moreover, regional economic community has heterogeneous effects on deforestation consistent with the coordination policies. Second, we test the implication of these results for uncoordinated environmental policies using two measures: a de jure and a de facto environmental policy. Our results support that countries adopt a strategic behavior in response to the environmental policy of their neighbors. A 1% increase in neighbors’ environmental commitment increases one’s own environmental commitment by 0.3% and 0.8% for de jure and de facto respectively. We document that this strategic behavior leads to a race to the top for de jure environmental policy and a race to the bottom de facto environmental policy. As African countries increasingly engage in de jure environmental enforcement, their de facto efforts to mitigate climate change are slackening.en_US
dc.identifier.urihttps://publication.aercafricalibrary.org/handle/123456789/2774
dc.publisherAfrican Economic Research Consortiumen_US
dc.relation.ispartofseriesWorking Paper Series: CC-002;
dc.subjectDeforestation,en_US
dc.subjectclimate change,en_US
dc.subjectmining,en_US
dc.subjectenvironmental policyen_US
dc.titleStrategic Environmental Commitment and Climate Change in Africa: Evidence on Mining and Deforestationen_US
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