Government Effectiveness, Eco-Efficiency And Environmental Sustainability In Africa

Abstract

The study examines the relationship between eco-efficiency, government effectiveness, and ecological footprint in Africa across low-income countries (LICs), lower-middle-income countries (LMICs), and upper-middle-income countries (UMICs) spanning 1992 to 2020. Using various standard pre-estimation tests to account for the dataset’s structure, we used the Driscoll-Kraay Standard Error (DKSE) estimator and the Dumitrescu-Hurlin (DH) non-causality test for this study. The empirical findings reveal that eco-efficiency incentivises ecological degradation in LICs, whilst in LMICs it promotes ecological sustainability. The moderating effect of government effectiveness stimulates an increase in ecological footprint in LMICs, which possibly reflects weak institutional capacity that limits the translation of efficiency gains into environmental benefits, whilst in the LICs and UMICs categories, it spares ecological footprint. Additionally, the analysis revealed a two-way causation between eco-efficiency and ecological footprint across the LICs and LMICs, suggesting a feedback loop in which efficiency improvements both influence and respond to ecological pressure. In UMICs, a unidirectional causality from eco-efficiency to ecological footprint is observed, indicating that gains in efficiency directly impact environmental outcomes. Still, ecological pressure does not appear to drive further efficiency improvements. Thus, UMICs may benefit more from proactive policies that focus on enhancing eco-efficiency to reduce environmental degradation. Based on these findings, the study recommends the strengthening of public institutions across the Continent to design and implement tailored, eco-efficient environ mental policies that not only reduce ecological footprints but also support long-term sustain ability across African countries.