Environmental Degradation and Economic Growth in West Africa: A Fixed-Effects Panel Analysis of the WAMZ Region

Abstract

This study investigated the impact of environmental degradation on
economic growth among the West African Monetary Zone (WAMZ) member
countries between 1990 and 2022. Utilizing a panel regression model with
fixed effects, the analysis focuses on key environmental indicators,
including nitrogen emissions, particulate matter, solid fuel consumption,
and ozone layer depletion, to assess their influence on economic
performance. The findings revealed that certain environmental indicators,
particularly nitrogen emissions and solid fuel consumption, exhibit a
positive and statistically significant relationship with economic growth in
the WAMZ region. This suggests that policy efforts aimed at reducing
excessive solid fuel use and maintaining an optimal level of nitrogen in the
atmosphere could contribute positively to economic expansion. However,
particulate matter emissions remain a major concern, with their negative
externalities necessitating stronger environmental regulation. Interestingly,
ozone layer depletion was found to have no significant predictive power
over economic growth in the region. Given these outcomes, the study
advocates for a multipronged policy framework that addresses not only
energy-related environmental degradation but also other sources such as
bush burning, agricultural practices, and improper household waste
disposal. A comprehensive regulatory system is recommended to minimize
particulate emissions, safeguard public health, and ensure environmentally
sustainable economic growth across the WAMZ countries.