article · Sustainability
The pursuit of economic growth in developing countries like Tanzania often intensifies environmental degradation, posing significant sustainability challenges. This study examined the interrelationships between globalization, economic growth, and environmental degradation in Tanzania from 1970 to 2022, using World Bank data and the autoregressive distributed lag (ARDL) model. The findings reveal a strong long-run positive relationship between GDP per capita and CO2 emissions, partially supporting the environmental Kuznets curve (EKC) hypothesis. Specifically, the analysis identifies an EKC threshold where emissions peak at 3 metric tons per capita and GDP per capita reaches approximately USD 1200 (TSH 3,120,000), after which further increases in emissions are associated with a decline in GDP per capita. In the short run, GDP per capita shows a weak negative association with CO2 emissions, indicating temporary environmental benefits during growth phases. Foreign direct investment (FDI) exhibits no significant short-term impact on emissions, mostly due to delays in the implementation of mega development projects and changes in the country’s economic policies as the result of change in the political regime. Additionally, trade openness is a significant driver of long-run emissions, emphasizing the environmental costs of globalization. To address these challenges, this study recommends that Tanzania attract sustainable FDI for integrating eco-friendly technologies, promote green trade practices by embedding environmental safeguards into trade agreements, and invest in renewable energy infrastructure to decouple growth from emissions. Strengthening environmental regulations, enhancing institutional capacity, and fostering international collaboration are crucial to achieving long-term sustainability. These measures can help Tanzania balance economic development and environmental preservation, aligning with the goals of Tanzania Development Vision 2025 (TDV 2025) and paving the way for a sustainable growth trajectory.
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DOI: 10.3390/su162410983
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