Moderating Effect of Institutional Quality on the Population Growth-Environmental Sustainability Nexus in Sub-Saharan Africa

Abstract

<title>Abstract</title> This study examines the moderating effect of institutional quality on the population growth-environmental sustainability nexus in Sub-Saharan Africa (SSA) over the period 2000–2020. Applying the Generalized Method of Moments (GMM) estimation technique and a Granger causality test to check if there exists any causality between population growth and emission levels, the findings indicate that population growth positively impacts on emission level in Sub-Saharan Africa, thus, affecting the environment negatively. However, its observed effect was statistically insignificant due to the interaction of institutions with population growth which proved significant. The results further indicate that other macroeconomic variables impacting positively and significantly on emission level in SSA are economic complexity index and per capita GDP. The study also establishes that there is no causal relationship between population growth and emission level in SSA. Lastly, the study finds that institutions play a vital role in reducing emission levels in the zone. It is therefore recommended that the government should vigorously pursue population and environmental policies directed at promoting environmental sustainability by controlling population, and promoting sustainable environmental practices. <bold>JEL Classification</bold>: O43; 044; J130; J180