Empirical Economics Letters, 22 (11): (November 2023) ISSN 1681 8997

https://doi.org/10.5281/zenodo.10449951

Improving Environmental Quality in Sub-Saharan Africa:

The Impact of Women's Economic Empowerment
Hermine Balouki Mikala*
University of Omar Bongo, Libreville, Gabon

Gladys Njang Che**

University of Bamenda, Bamenda, Cameroon

Abstract: On the question of whether women's economic empowerment promotes

environmental quality, the jury is still out. Pending a decision, we investigate the
influence of women's economic empowerment on CO2 emissions given the
dynamics of renewable energy in Sub-Saharan Africa (SSA). This study uses a
panel of 24 countries during the period 2000-2020.The empirical evidence is based
on the use of Driscoll-Kraay, Panel Corrected Standard Error and Generalized
Least Squares methods. The results show that women's economic empowerment
significantly reduces CO2. Furthermore, the introduction of the renewable energy
consumption allowed us to find that this variable is a potential channel through
which women's economic empowerment exerts its effect on environmental quality
in SSA. Therefore, we suggest that governments create conditions for financing
women's projects through access to micro-credit. In addition, governments should
promote the consumption of renewable energy by reducing constraints to the
production of green technologies.

Keywords: women's economic empowerment; environmental quality; renewable

energy; SSA

1. Introduction
Climate change has had an impact on Africa's GDP. The continent's GDP is declining
between 5% and 15% due to climate change. The high warming scenario will have
particularly severe consequences for African economies. The reduction in GDP per capita
growth under this scenario is projected to be between 16 and 64% by 2030 (AfDB, 2022).
Africa is not the only continent that suffers losses due to climate change; other continents
are no exception. According to the 2017 Lancet Commission on Pollution and Health
which used data from the 2015 Global Burden of Diseases (GBD) study, found that
pollution was responsible for about 9 million deaths (16% of all deaths worldwide) and
economic losses totaling US$4.6 trillion (6.2% of global economic output) in 2015
(Landrigan et al., 2018).

*
Corresponding author. Email: baloukimikala@gmail.com; **Email: gladys.njang@yahoo.com
Empirical Economics Letters, 22 (11): (November 2023) 216

The degradation of ecosystems, which presents unsuspected risks, frightens today's man
and leads us to fear harmful consequences for the future generation (Hugon, 2005). Even
if this concern is a global one, it is nonetheless in developing countries that it is most
acute. Indeed, in these countries, environmental issues are compounded by another no less
important one: population growth. The strong growth of the population, which is also
linked to a market economy, undoubtedly has repercussions on their socio-economic
situation, which is gradually deteriorating as resources become increasingly scarce. To this
effect, it results in a rural exodus in search of better living conditions, from which many
agricultural lands, wetlands, forests and even deserts have been transformed into human
settlements over a period of time. It is obvious that everyone is familiar with these changes
in their local environments. The growth of urban areas has led to a decrease in land for
agricultural purposes, as well as the loss of open space, natural vegetation and natural
habitats, not to mention a decrease in food production.
According to the UN report, the major population growth will occur in Africa, where the
African population will double by 2050 from 1.1 billion today to 2.4 billion in 2050,
reaching 4.2 billion by 21001 . This will lead to many environmental problems such as
impossible sanitation due to the emergence of informal settlements, insufficient drinking
water for the whole population, sometimes impossible waste disposal, energy related
problems, etc. These problems mentioned above affect not only the environment but also
the health and life of the population.
Consequently, since the first United Nations Conference on the Human Environment in
Stockholm in 1972, environmental degradation has gradually become a matter of great
concern to governments, international organizations and non-governmental bodies alike.
The reason is simple: it was realized that development as an objective to be achieved by
all countries was not viable if environmental protection was not integrated into its pursuit,
hence the emergence of a new concept of development, which is that of sustainable
development given by the Brundtland Commission in 1987. Sustainable development
emerged with the aim not only to protect the environment, but also to preserve the future
of future generations. This ethical and political imperative calls for the discernment of
every action and gesture of the human being towards the biosphere. That is, before we act,
we must consider the consequences of our actions for the present and the future.
Sustainable development emphasizes that we all share planet earth as human beings, but
also that it belongs to future generations. This is what prompted the Jewish philosopher
Hans Jonas (1979) to formulate the principle of responsibility, which is expressed in these
terms: “Act in such a way that the consequences of your action can preserve the
continuation of a healthy life on the planet”.

1
http://www.un.org/apps/newsFr/storyF.asp?NewsID=30521#.Wmy
Empirical Economics Letters, 22 (11): (November 2023) 217

However, while environmental degradation is a global phenomenon, it does not affect all
populations with the same intensity. Women seem to be doubly affected in relation to their
subordinate status as women, especially in underdeveloped countries. Directly involved in
daily interactions with the environment, especially in third world countries, they suffer the
adverse consequences of environmental degradation and the scarcity of vital resources. It
is easy to see that women are not given full participation in decision-making on
environmental issues, because often in underdeveloped countries they are the ones who do
the farming, the household chores, cut wood for the fire, waste water to water the fields,
even though this work is not recognized in economic terms, because most often these
women are not paid. These activities are important because they strengthen the family
bond and the relationship with the environment, but they can also affect biodiversity. In
Africa South of the Sahara, they are responsible for almost all food production. Despite
this, their needs are almost never taken into account in agricultural development
programs"2 . In Africa, women represent 60 to 70% of the active population in this sector.
As such, they are directly affected by its degradation and by the scarcity of natural
resources. In many ways, they can also have a major impact in its destruction. Despite
their alliance with the environment, these women still seem to be sidelined when it comes
to solving environmental problems, even though they can offer solutions.
However, Zuinen (2002) argues that "the women's movement has always been
characterized by this desire to participate more fully in the definition of societal choices.
The report of the World Conference on Women in 1985 makes this clear by calling on
governments and political parties to intensify their efforts to stimulate and ensure the
equitable participation of women in all national and local legislative bodies and to achieve
equity in the nomination, election, and promotion of women to high-level positions in the
executive, judicial, and legislative activities of these bodies. Similarly, the United Nations
(UN) emphasizes that "women have an important role to play in preserving the
environment and natural resources and in promoting sustainable development. For
example, the primary responsibility for providing for the household falls on women, and
women largely determine consumption patterns. Thus, women have a fundamental role to
play in the adoption of sustainable and environmentally sound consumption, natural
resource management and production patterns" 3. Thus, the Platform for Action at the
Fourth World Conference on Women in Beijing in 1995 spoke of the importance of
involving women in environmental decision-making and also of including a gender
concept in all sustainable development policy plans 4.

2
Brundtland Report, 1987, pp. 99-100.
3
http://www.un.org/french/womenwatch/followup/beijing5/session/fiche11.html.
4
Ibid
Empirical Economics Letters, 22 (11): (November 2023) 218

Sustainable development recognizes the place of women and their daily interaction with
their environment, and even the Fourth World Conference on Women held in Beijing in
1995 stressed the vital importance of giving women a place in environmental decision-
making. The Beijing Conference stated that policies for sustainable development that do
not involve women on an equal footing with men will not succeed. Moreover, principle 20
of the Rio Conference's action program also mentions the importance of involving women
in the fight against climate change. However, the reality is different, because the way the
concept of sustainable development is deployed on the ground does not really integrate the
effective participation of women in achieving the Sustainable Development Goals 5 .
Essentially, women should be considered in their matrix function if the goals of
sustainable development are to be achieved (Zuinen, 2002).
The work of Gnoumou (2014) shows for example in Burkina Faso, as in several African
countries, despite the efforts made to improve women's conditions, structural gender
inequalities still exist in different sectors. Indeed, gender inequalities start first within the
household where women suffer multiple oppressions on a daily basis from their own
family, husband, in-laws or even the community, they are part of, thus women do not have
the same space as men to express themselves. Similarly, the World Development Report
issued by the World Bank in 2012 also shows low participation of women in household
decision making even for decisions concerning their own lives in sub-Saharan Africa.
Indeed, women's absence from decision-making power begins at home and continues into
local and global decision-making bodies. According to the United Nations (UN, 2015),
two-thirds of women in developing regions are excluded from economic decision-making
within their own households.
Despite the fact that women's voices are not taken into account in decision-making bodies,
they are not discouraged, because the initiatives they take to protect the environment are
impressive. For example, in 1962, the appearance of Rachel Carson's book entitled "A
Silent Spring" alerted public opinion to the dangers of pesticide used. And women have
been leaders in efforts to warn buyers of the potential risks of widespread use of chemical
pollutants, toxic sprays and radiation6. Then, there are African women members of the
Green Belt Movement, started by Kenyan Wangari Maathai, who won the Nobel Peace
Prize in 2004, Green Belt members have taken the initiative to plant trees to combat
desertification and provide income for poor women, risking their lives in acts of civil
disobedience7 . In the same vein, we also note the struggle of Marina Silva. She is a

5
http://www.un.org/french/womenwatch/followup/beijing5/session/fiche7.html.
6
http://www.unesco.org/new/fr/natural-sciences/ioc-oceans/about-us/special-events/the-legacy-of-
rachel-carsonssilent-spring/.
7
http://unesdoc.unesco.org/images/0009/000907/090796fo.pdf .
Empirical Economics Letters, 22 (11): (November 2023) 219

warrior of the Amazon rainforest in Brazil. Silva was a colleague of Chico Mendes, who
was murdered for defending the rainforest in 1988. She and Mendes led protests in the
1980s to protect the rainforest from government control. After Mendes' assassination,
Silva became a politician and fought for environmental protection, sustainable
development and social justice. Deforestation decreased by 59% from 2004 to 2007,
during his political career (Raimi et al, 2019). In addition, Isatou Ceesay, nicknamed "the
queen of recycling", is a Gambian activist who started the recycling movement called a
plastic bag in the Gambia. Ceesay works to educate citizens about recycling and reduce
the amount of waste created. She founded a project that creates plastic yarn and forms
bags from recycled waste. Not only has her project significantly reduced the amount of
waste in her village, but it also employs hundreds of West African women and provides
them with a monthly income. In the same vein, May Boeve co-founded 350.org in 2008,
an organization dedicated to fighting climate change by connecting world leaders. The
organization's goal is to reduce carbon dioxide levels in the atmosphere to a point where
global warming will not be as dangerous as predicted. His organization goes directly to the
source: the fossil fuel industry. By limiting the power of the industry itself, they hope to
then confront the government about limiting carbon dioxide emissions. There are the
CHIPKO women of India who tied themselves to trees to protect the forest where they
found their livelihoods, these women fought to save the forests that were disappearing
because of modern industries8 . Similarly, as Indian physicist Vandana Shiva has done to
launch an international campaign against the application of genetic engineering to seeds
and food by transnational corporations, "it is time to stop the corporate bullying of
independent scientists and even scientists working with UN agencies such as the WHO. It
is time to adopt a moratorium while more research is done on the health and safety of
Genetically Modified Organisms and Roundup9 ." Finally, it turns out that environmental
activism has engaged young people in particular, who have also produced their own role
models and icons in the fight for the climate. Among these role models is a 17-year-old
Swedish girl who became world famous in the autumn of 2018 with her climate strike
"skolstrejk för klimatet". She is Greta Thunberg. Completely unknown 4 years ago, this
young Swedish girl is now recognized everywhere, not only in Sweden but also in other
countries, such as France. This Swedish teenager has become a model for many other
young people in the fight against climate change. During one year, she has already met
with world politicians and participated in several very important climate assemblies such
as COP24 and the Climate Action Summit 2019 in New York, where she gave a speech to
the UN General Assembly.

8
77 http://www.fao.org/docrep/r0465f/r0465f03.htm
9
http://www.consommateurspascobayes.com/pdf/OGM-TRANSPARENCE-VANDANA-
SHIVA.pdf page 1.
Empirical Economics Letters, 22 (11): (November 2023) 220

In developing countries, the growing social awareness has highlighted most of the ills
plaguing the societies, among which gender inequality and inadequate empowerment of
women have gained importance (Murtaza, 2012). Empowerment allows citizens of the
society to value their own potential, improve their economic and social participation and
have appropriate status in the society (Kandpal et al., 2011). Empowerment is important
for both genders, but it is mostly related to women as they are more deprived in the society
(Malhotra and Schuler, 2005).
In an effort to address gender inequality issues, the last decade has seen an increase in
programs focused on women's empowerment (Seymour and Peterman, 2018). Sustainable
Development Goal (SDG) 5 identifies the achievement of gender equality and the
empowerment of all women and girls as one of the key steps to achieving inclusive and
sustainable development by 2030.
According to the United Nations (1995), women's empowerment refers to their essential
right to have vigor in managing their homes and external participation. According to
Hossain et al (2019), women's empowerment increases their life satisfaction and their
feelings of self-esteem and efficacy. Thus, women's political empowerment has intrinsic
value for women. Achieving gender parity in political and economic rights, which is one
of the 17 United Nations Sustainable Development Goals, has not only instrumental but
also moral value. However, while many states and global agencies pay lip service to
gender equality, only 27% of the world's leadership positions are held by women, and as
many as 104 countries have laws that actively prevent women from participating in social
and political life, including from pursuing professions of their choice (World Bank, 2018).
Empowering women enables them to have their own intellectual and material resources
for their self-sufficiency and self-management status, as women make up half of the
world's population (Abrar-ul-haq et al., 2017). Unfortunately, in various parts of the world,
women are not able to get their rights due to the ideology of male dominance (Karim et al.,
2018). Much literature supports the idea of gendered behavioral patterns in resource
allocation (Peterman et al., 2015) and that when women have greater influence over or
control over income, they are more likely to make spending decisions that improve family
well-being.
Indeed, a large and growing literature has identified links between women's empowerment
and development goals. Empirically, these links cover a variety of areas and include
improvements in economic growth (Dahlum et al., 2022), maternal health (Bloom et al.,
2001), child education (Hatlebakk and Gurung, 2016), child health and nutrition (Carlson
et al, 2015; Pratley, 2016), poverty reduction (Nadim and Nurlukman, 2017), and access to
electricity and energy efficiency (Opoku et al., 2021). However, existing studies seem to
have ignored the role of women's empowerment as a solution in the fight against climate
Empirical Economics Letters, 22 (11): (November 2023) 221

change. However, women's economic empowerment would allow them to opt for the
consumption of environmentally friendly products, for example. Thus, the objective of this
study is to fill this gap in the literature by assessing the effect of women's economic
empowerment on environmental quality.
Considering the fact that several studies have demonstrated that an increase of the
renewable energy consumption leads to decrease the CO2 emissions (Dong et al, 2018;
Chen et al, 2019; Bilan et al. 2019; Shahnazi and Dehghan Shabani, 2021; Awosusi et al,
2022), an increase in women’s economic empowerment may raise the consumption of the
renewable energy that finally leads a decrease of C O2 emissions. Consequently, the
renewable energy consumption can be a potential channel through which the women’s
economic empowerment influences the environmental quality. In summary, the
achievement of sustainable development goals requires the women’s economic
empowerment.
This study is important on at least two levels: (i) Africa's contribution to global pollution is
3% (Avom et al., 2020). In view of the projections on African demography in 2050, it is
highly likely that this rate will be revised upwards. To this end, an understanding of the
explanatory factors of environmental pollution provides an empirical basis for combating
climate change; (ii) According to the UN (2015), two-thirds of women in developing
regions are excluded from economic decision-making within their own households.
However, women's economic empowerment enables them to have their own intellectual
and material resources for their self-sufficiency and self-management status. This allows
them to make choices that would contribute not only to the well-being of the family but
also to environmental well-being. The rest of this paper is organized as follows. Section
two is devoted to the literature review. Section three highlights the methodological
approach. Section four presents the results and section five concludes.

2. Literature Review
This section is subdivided into two subsections: the theoretical review and the empirical
review.
2.1. Theoretical foundations
Public participation is a process that gives individuals the opportunity to influence public
decisions in particular societies. These individuals include private citizens who influence
public decisions. It was created in the mid-1960s. President Lyndon Johnson's Great
Society Programs are the origin of it (Parker, 2003). Participation theory has its roots in
political science and development theory. The fact that the poor in society are often not
considered on development issues triggered the creation of the participatory approach. It
was born out of the fact that the poor are often removed from the decision-making
Empirical Economics Letters, 22 (11): (November 2023) 222

processes, including implementation and the benefits that flow from it. This basic root of
the approach makes it important as it advocates for the inclusion of the poor in
development processes just as others in society are also planned (Claridge, 2004). Public
participation has become part of the development process since the 2000s. The problem is
how well the process is managed given the generality of the public as well as the practice
of inclusion in development (Quick and Bryson, 2016). The words public and citizen
involvement and participation are often used alternatively. They have a common reference
to a process that allows private individuals to influence public policy decision. Their
explanation of the process is basically vague but with meanings (Mize, 1972).
What about the empirical relationship between women's empowerment and sustainable
development variables?
2.2. Empirical evidence of the relationship between women's empowerment and
sustainable development
Empirically, several studies have analyzed the effect of women's empowerment on
sustainable development variables such as health, education, poverty and economic
growth. Gupta (1996) analyzed the effect of women's empowerment on reproductive
health in South Asia. The results revealed that female empowerment leads to decline in
fertility. In a similar vein, Prennushi and Gupta (2014) examined whether one of the
world's largest women's empowerment and rural livelihoods programs, Indira Kranti
Patham in Andhra Pradesh, India, has had an impact on the economic and social well-
being of households participating in the program. The analysis uses panel data for 4,250
households from two rounds of a survey conducted in 2004 and 2008 in five districts.
There are two major impacts. First, the Indira Kranti Patham program increased
participants' access to loans, which allowed them to accumulate some assets (livestock and
durable goods for the poorest and non-farm assets for the poor), invest in education, and
increase total expenditures (for both the poorest and the poor). Women who participated in
the program had more freedom to move around and were less afraid to disagree with their
husbands; women participated more in village meetings and their children were slightly
more likely to attend school. Consistent with the program's focus on the poor, impacts
were strongest in all areas for the poorest and poorest participants and were most
pronounced for long-term participants from the scheduled tribes. No significant
differences were found between participants and non-participants on some indicators of
maternal and child health. Second, program participants were significantly more likely to
benefit from a variety of targeted government programs, the most important of which was
the National Rural Employment Guarantee Program, as well as school lunch, hostel, and
housing programs. This was an important way in which the program contributed to the
improved well-being of program participants. In addition, Hatleback and Gurung (2016)
Empirical Economics Letters, 22 (11): (November 2023) 223

analyzed the effect of women's empowerment on children's education in NEPAL. Using a

sample of 480 women from an ethnically diverse region, the results indicate that economic
empowerment and decision-making power have positive effects on the education of
children of both sexes. The boy is given priority if the father's side of the family is
economically weak. Similarly, Nadim and Nurlukman (2017) analyzed the effect of
women empowerment on poverty reduction in a rural area in Bangladesh. They found a
positive effect of women empowerment on poverty reduction. Next, Dahlum et al. (2022)
analyzed the effect of women's political empowerment on economic growth in 182
countries around the world. The results of their analysis show that women's political
empowerment is positively correlated with economic growth. Finally, Opoku et al. (2021)
show that increased political empowerment positively impacts access to electric power and
improves energy efficiency in 36 African countries during the period 2000-2015.
Regarding the indirect relationship between women's empowerment and environmental
quality, the work of Opoku et al. (2021) has shown that governance quality is a
transmission channel through which women in politics impact renewable energy
consumption, access to electricity and environmental quality. According to the above
literature, the role of women’s economic empowerment in attaining the SDGs is key and
women are sustainability conscious (Adams and Funk, 2012; Rao and Tilt, 2016; Hunter et
al., 2004), we hypothesize that an increase in women’s economic empowerment will be
negatively associated with CO2 emissions.

In contrast to previous work, this study focuses on the effect of women's economic
empowerment on environmental quality. The aim is to analyze whether women's
economic empowerment can lower the pollution curve. In addition, we will seek to
analyze the role that renewable energy consumption can play in transmitting the effects of
women's economic empowerment on environmental quality.
3. Data and Methodology
3.1. Data
This study covers a panel of 24 sub-Saharan African countries with data covering the
period 2000-2020 from the World Bank's Development Indicators (WDI). The periodicity
and countries in our sample are chosen according to data availability constraints. The full
description of the data is presented in Tables 1 and 2. The list of countries in the sample as
well as the measures of the variables is provided in Tables A1 and A2 in the Appendix.
Table 1 summarizes the model variables through a few indicators. This table shows that
the average CO2 emissions (in metric tons per capita) are 0.44. Furthermore, the median
CO2 emission rate is 0.16, which means that 50% of the countries in our sample
individually record a CO2 emission rate lower than 0.16 while the remaining 50%
Empirical Economics Letters, 22 (11): (November 2023) 224

individually record a CO2 emission rate higher than 0.16. Calculating the coefficient of
variation of CO2 which is equal to the standard deviation divided by the mean (0.73 ÷ 0.44
= 1.65), we found that it is greater than 0.3, reflecting the heterogeneity of CO2 emissions
in SSA countries. As for variable economic empowerment, it has a mean of 82.86% and a
median of 90.40.
Table 1: Descriptive Statistics
CO2 WEE ICT TRADE Urbanization RSSN FDI
Obs 504 504 504 504 504 504 504
Average 0.44 82.86 6.90 71.74 34.48 12.34 4.54
Std dev. 0.73 20.49 10.53 33.70 14.10 10.53 7.63
Median 0.16 90.40 2.24 64.3 35.99 9.31 2.61
Min 0.02 13.21 0 20.72 8.24 0.0006 -4.85
Max 3.34 99.38 67.39 209.89 70.17 59.60 69.08
Source: Authors.
As for the correlation matrix, it is presented in Table 2. The analysis of this matrix reveals
three main information. The first finding is that the correlation coefficient between the
explanatory variables of the model is less than 87%, which shows that our model does not
suffer from the problem of multicollinearity. The second information highlights the
negative correlation between women's economic empowerment and CO2 emissions. The
last information concerns the contribution of women's economic empowerment to the
variation of CO2 emissions. The relationship between the linear correlation coefficient
(𝜌𝑥𝑦 ) and the coefficient of determination (𝑅2 ) is given by:
𝜌𝑥𝑦 = 𝑅2 → 𝑅2 = 𝜌𝑥𝑦 2
→ 𝑅2 = (−0.8455)2 = 0.7148 = 71.48%. Thus, the change in
CO2 emissions explained by women's economic empowerment is 71.48%.
Table 2: Correlation matrix
CO2 WEE ICT TRADE Urbanization RSSN FDI
CO2 1.00
WEE -0.8455*** 1.00
ICT 0.2415*** -0.2036*** 1.00
TRADE 0.4802*** -0.4391*** 0.1080** 1.00
Urbanization 0.5572*** -0.2479*** 0.0833* 0.3626*** 1.00
RSSN -0.2527*** 0.3973*** -0.1812*** 0.0058 0.0476 1.00
FDI 0.0369 0.1256*** 0.0017 0.3178*** 0.1781*** 0.247*** 1.00
Source: Authors using Stata14 software. *, ** and *** represent significance at 10.5 and 1%.
[

Figure 1 shows that there is a negative correlation between women's economic

empowerment and CO2 emissions. A priori, it can be inferred that greater economic
empowerment of women is associated with lower CO2 emissions. However, since
Empirical Economics Letters, 22 (11): (November 2023) 225

correlation does not mean causation, this relationship will be explored empirically in the
next section.
Figure 1: Women's economic empowerment and environmental quality
4
3
2
1
0

20 40 60 80 100
wee

co2 Fitted values

Source: Authors.
The dependent variable in this study is environmental quality. It is measured by the C O2
emission rate (in metric tons per capita). This environmental quality indicator has been
widely used in recent literature (Avom et al., 2020; Ahmed et al., 2022). As for the
independent variable of interest (women's economic empowerment), it is captured by the
number of self-employed women as a percentage of the total number of working women.
In order to reduce the bias that may result from possible omitted variables, five control
variables are included in this study. They include (i) trade openness, (ii) urbanization, (iii)
information and communication technology, (iv) natural resources and (v) foreign direct
investment. A detailed description of the variables as well as the definition of these
variables is presented in the appendix. Before proceeding to the empirical analysis on the
relationship between economic empowerment and environmental quality, a brief
description of the expected signs is given in the paragraphs below.
The pollution haven hypothesis has been extensively explored in the literature. To this
end, the work of Cole (2004) and Managi et al. (2009) showed that trade openness leads to
environmental degradation, thus validating this hypothesis. Similarly, Pao and Tsai (2011)
obtained results validating the pollution haven hypothesis. They analyzed the relationship
Empirical Economics Letters, 22 (11): (November 2023) 226

between FDI and CO2 emissions for BRICs (Brazil, Russia, India and China). As for the
relationship between urbanization and environment, Li et al. (2019) found that
urbanization leads to environmental degradation. Along with urbanization, information
and communication technologies deteriorate the quality of the environment (Avom et al.,
2020). Furthermore Tadadjeu et al. (2020) showed that natural resources contribute to the
degradation of environmental quality by reducing access to water. Table 3 gives the results
of the Pesaran (2004) cross-sectional dependence test. The analysis of this table reveals
that all the variables in the study admit cross-sectional dependence as shown by the p-
values which are all less than 1%.
Table 3: Result of the Pesaran (2004) cross-sectional dependence test
Variables CD-test P-value Corr Abs (corr)
CO2 30.67 0.00 0.403 0.564
WEE 15.24 0.00 0.200 0.679
ICT 3.67 0.00 0.048 0.325
TRADE 11.99 0.00 0.157 0.442
Urbanization 58.95 0.00 0.774 0.933
RSSN 9.83 0.00 0.129 0.432
FDI 4.29 0.00 0.056 0.267
Source: Authors using Stata14 software.
3.2. Methodology
The objective of this paper is to study the impact of women's economic empowerment on
the environmental quality of sub-Saharan African countries. According to the recent
literature on environmental quality (Avom et al. 2020), we formulate the following model:
𝐶𝑂2𝑖𝑡 = 𝛽0 + 𝛽1 𝑊𝐸𝐸𝑖𝑡 + 𝛽2 𝐼𝐶𝑇𝑖𝑡 + 𝛽3 𝑇𝑅𝐴𝐷𝐸𝑖𝑡 + 𝛽4 𝑈𝑟𝑏𝑎𝑛𝑖𝑠𝑎𝑡𝑖𝑜𝑛𝑖𝑡
+ 𝛽5 𝑅𝑆𝑆𝑁𝑖𝑡 + 𝛽6 𝐹𝐷𝐼𝑖𝑡 + 𝑢𝑖 + 𝑣𝑡 + 𝑒𝑖𝑡 (1)

Where 𝑢𝑖 is the unobserved country-specific effect, 𝑣𝑡 is the time-specific effect and 𝑒𝑖𝑡 is
the error term. When all the variables in an econometric model admit cross-sectional
dependence, the best approach is to estimate this regression model using the Driscoll-
Kraay method, which is robust to standard errors (Hoechle, 2007). Furthermore, we will
mobilize the Panel Corrected Standard Error (PCSE) and the Feasible Generalized Least
Squares (FGLS) methods to test the robustness of our results. For, a popular Prais-Winsten
estimation with the Panel Corrected Standard Error (PCSE), suggested by Beck and Katz
(1995), has been performed to offer efficiency and consistency. Nevertheless, a related
technique that would also achieve the same goal of overcoming group heteroskedasticity,
time-invariant cross-sectional dependence as well as serial correlations is the Feasible
Generalized Least Squares (FGLS) estimator previously proposed by Parks (1967). In fact,
Empirical Economics Letters, 22 (11): (November 2023) 227

Monte Carlo simulations revealed that the FGLS and PCSE estimators are robust to three
econometric problems: autocorrelation, heteroskedasticity, and panel correlation (Bai et
al., 2021). However, as reported by Reed and Ye (2011), the FGLS estimator has been
found to significantly underestimate standard errors in finite samples and cannot be used
when the number of cross sections (N) is greater than the number of periods (T). In such
circumstances, Beck and Katz (1995) proposed the PCSE estimator, which is a
modification of the full GLS-Parks estimator that preserves the Prais-Winsten weighting
of the observations for autocorrelation, but uses a sandwich estimator to incorporate the
cross-sectional dependence when calculating the standard errors.
Since our sample includes a larger N (24) compared to T (21), the automatic choice for
robustness is PCSE. The PCSE models are both heteroskedasticity and simultaneously
correlated across panels, with or without autocorrelation. However, since the empirical
literature has found the two estimators to be mostly identical with common attributes,
except when the number of time periods is twice the number of cross sections, (Reed and
Ye, 2011), we also present the results of the FGLS method as an alternative measure to
check the robustness of our findings.
4. Results
The results of this study are presented in three points. First, we analyze the results from
the estimation of the effect of women's economic empowerment on environmental quality
through the Driscoll-Kraay method (Table 4). Next, we highlight the results from the
estimates of the PCSE and FGLS methods (Tables 5 and 6). Finally, we present the role
that renewable energy consumption can play in transmitting the effects of women's
empowerment on environmental quality (Table 7).
4.1. Presentation of the results through Driscoll-Kraay technique
Table 4 suggests that women's economic empowerment significantly reduces the level of
CO2 emissions in all six columns, ceteris paribus. For example, the results in column (6)
show that an increase in women's economic empowerment by one unit leads to a decrease
in CO2 emissions by 2.76%. This result can be explained by the fact that women's
economic empowerment provides them with a status of self-sufficiency and self-
management. And since majority of women are relatively more concerned about
sustainability and more about environmental hazards (Rao and Tilt, 2016) due to their
interaction with the environment on a daily basis, they are more likely to support
investments in sustainable energy and energy efficiency (Habtezion, 2016). This result is
consistent with the work of Opoku et al. (2021) who found that women's political
empowerment improves energy efficiency in African countries.
Empirical Economics Letters, 22 (11): (November 2023) 228

Information and communication technologies lead to a significant degradation of the

quality of the environment. For example, an increase in information and communication
technologies by one unit leads to an increase in CO2 emissions of 0.4% (column 6). The
negative effect of ICT on the quality environment can be explained by the inefficient use
of energy by a large amount of technological equipment. This result is consistent with the
work of Avom et al. (2020) who showed that ICTs contribute significantly to increase CO2
emissions in sub-Saharan Africa. Urbanization, on the other hand, affects environmental
quality by increasing CO2 emissions. For example, an increase in urbanization by one unit
leads to an increase in CO2 emissions of 1.8% (column 6). This result can be explained by
economically irresponsible lifestyles in urban areas that increase CO2 emissions and
degrade the natural ecosystem. This result is consistent with the work of Li et al. (2019).
Table 4: Effect of Women's Economic Empowerment on Environmental Quality
using the Driscoll and Kraay Method
Dependent variable : CO2 emissions
1 2 3 4 5 6
WEE -0.0301*** -0.0296*** -0.0275*** -0.0262*** -0.0269*** -0.0276***
ICT 0.0050*** 0.0048*** 0.0041** 0.0044*** 0.0043***
Trade 0.0028*** 0.0004 0.0002 -0.0003
Urbanization 0.0188*** 0.0185*** 0.0182***
RSSN 0.0028** 0.0022**
FDI 0.065***
Cons 2.9422*** 2.864*** 2.4860*** 1.9071*** 1.9496*** 2.0389***
R2 0.71 0.71 0.73 0.84 0.84 0.85
Prob(F-stat) 0.00 0.00 0.00 0.00 0.00 0.00
Source: Authors using Stata 14 software. Note: Note: N = 504. ** and *** represent significance at
the 5 and 1% levels respectively.
With regard to natural resources, they significantly increase CO2 emissions. Thus, an
increase in natural resources by one unit leads to an increase in CO2 emissions of 0.22%
(column 6). This result can be explained by the lack of strict compliance with
environmental standards by companies specializing in the exploitation of natural
resources. This result is consistent with the work of Tadadjeu et al. (2020) who
demonstrated that natural resources significantly reduce access to water in sub-Saharan
African countries. Finally, foreign direct investment is also an obstacle to environmental
quality. Thus, an increase in foreign direct investment of one unit leads to an increase in
CO2 emissions of 6.5%. This result allows us to validate the pollution haven hypothesis.
This result is consistent with the work of Pao and Tsai (2011) who validated the said
hypothesis for the BRIC countries (Brazil, Russia, India and China).
Empirical Economics Letters, 22 (11): (November 2023) 229

4.2. Sensitivity Analysis

To test the sensitivity of results, we mobilized the PCSE and FGLS methods, which have
the particularity of being robust to the problem of autocorrelation and heteroskedasticity of
errors. Results of these estimations are reported in Tables 5 and 6. These results reveal that
women's economic empowerment significantly reduces CO2. Similarly, variables such as
information and communication technology, urbanization, natural resources and foreign
direct investment retain their signs and significance as in Table 4.
Table 5: Effect of Women's Economic Empowerment on Environmental Quality
using the Standard Error Corrected Panel (SECP) Method
Dependent variable : Emissions of CO2
1 2 3 4 5 6
WEE -0.0301*** -0.0296*** -0.0275*** -0.0262*** -0.0269*** -0.0276***
ICT 0.0050*** 0.0048*** 0.0041** 0.0044*** 0.0043***
TRADE 0.0028*** 0.0004 0.0002 -0.0003
Urbanization 0.0188*** 0.0185*** 0.0182***
RSSN 0.0028** 0.0022**
FDI 0.065***
CONS 2.9422*** 2.864*** 2.4860*** 1.9071*** 1.9496*** 2.0389***
R2 0.71 0.71 0.73 0.84 0.84 0.85
Prob(Chi2) 0.00 0.00 0.00 0.00 0.00 0.00
Source: Authors using Stata 14 software. Note: N = 504. ** and *** represent significance at the 5
and 1% levels respectively.
Table 6: Effect of Women's Economic Empowerment on Environmental Quality
through FGLS method
Dependent variable : Emissions of CO2
1 2 3 4 5 6
WEE -0.0 301*** -0.0296*** -0.0275*** -0.0262*** -0.0269*** -0.0276***
ICT 0.0050*** 0.0048*** 0.0041** 0.0044*** 0.0043***
TRADE 0.0028*** 0.0004 0.0002 -0.0003
Urbanization 0.0188*** 0.0185*** 0.0182***
RSSN 0.0028** 0.0022*
FDI 0.065***
CONS 2.9422*** 2.864*** 2.4860*** 1.9071*** 1.9496*** 2.0389***
Prob(Chi2) 0.00 0.00 0.00 0.00 0.00 0.00
Source: Authors using Stata 14 software. Note: Note: N = 504. *, ** and *** represent significance
at the 10, 5 and 1% levels respectively.
Empirical Economics Letters, 22 (11): (November 2023) 230

4.3. Women's economic empowerment and environmental quality: the role of

renewable energy consumption
Building on the work of Opoku et al (2021) which highlights the indirect relationship
between women's political empowerment and the environment through governance (the
role of governance in transmitting the effects of women's political empowerment on access
to electricity and improved energy efficiency), we sought to determine the transmission
channel through which women's economic empowerment exerts its effect on
environmental quality. To this end, we considered the hypothesis that once women are
economically empowered, in their concern to preserve the environment, they may resort to
the consumption of renewable energy (the costs of which are not within the reach of all).
For example, electricity produced from renewable energy sources (which emit little C O2).
Moreover, these energy sources are a resilience factor because they allow for decarbonized
production. To verify this intuition, we constructed an interaction variable (WEE*ENR)
that represents the product of women's economic empowerment and renewable energy
consumption. This variable was included in the econometric model (1) and the results
from the estimations through the PCSE and FGLS methods are reported in Table 7. From
Table 7, it can be seen that women's economic empowerment significantly reduces CO 2
emissions (Column 1 & 2). Moreover, the sign of the interaction variable (AE*ENR) is
negative and significant for both columns. Thus, renewable energy consumption emerges
as a potential channel through which women's economic empowerment exerts its effect on
environmental quality.
Table 7: Effect of women's economic empowerment on environmental quality
through renewable energy consumption
Variables Dependent variable : Emissions of CO2
PCSE FGLS
WEE -0.0198*** -0.0200***
ICT -0.0001 -0.0001
TRADE 0.0006 0.0005
Urbanization 0.0240*** 0.0242***
RSSN -0.0004 -0.0004
FDI 0.00005 0.00006
ENR -0.007** -0.006*
WEE*ENR -0.0003** -0.0003*
CONS 1.4987*** 1.5023***
R2 0.77 -
Prob(Chi2) 0.00 0.00
Source: Authors using Stata 14 software. Notes: Note: N = 504. *, ** and*** represent significance
at the 10, 5 and 1% levels respectively.
Empirical Economics Letters, 22 (11): (November 2023) 231

5. Conclusion and Policy implications

Despite the extensive literature on the determinants of environmental quality, existing
studies have not yet analyzed the effect of women's economic empowerment on
environmental quality. However, women's economic empowerment allows them to make
choices or expenditures that are beneficial not only for family well-being but also for
environmental quality. It is through this idea that we analyzed the effect of women's
economic empowerment on environmental quality in 24 sub-Saharan African countries
over the period 2000-2020. The empirical analyses are based on the Driscoll-Kraay
method. In summary, the results revealed that women's economic empowerment-measured
by the number of self-employed women out of the total number of employed women-
significantly reduces CO2 emissions. In addition, the use of estimation techniques such as
PCSE and FGLS allowed us to validate the robustness of these results. Furthermore, we
found that information and communication technologies, urbanization, natural resources
and foreign direct investments are the vectors of CO 2 emissions in Sub-Saharan Africa.
Finally, the introduction of the renewable energy consumption variable allowed us to see
that the latter is a potential channel through which women's economic empowerment
exerts its effect on environmental quality in sub-Saharan Africa.
Considering the fact that women's economic empowerment significantly reduces CO 2
emissions, we suggest to the different governments to create conditions to finance
women's projects through access to micro-credit. A coordination and monitoring unit at
the national and local levels should be set up to train and encourage women in
entrepreneurship for greater economic empowerment. In doing so, they will be able to
make the expenditures or choices that improve the quality of the environment. In addition,
governments could promote renewable energy consumption by reducing constraints on the
production costs of green technologies. This study has some limitations. CO2 does not fully
reflect environmental quality. Moreover, renewable energy consumption is not the only
transmission channel through which women's economic empowerment exerts its effect on
environmental quality. Thus, future studies could look for other transmission channels
through which women's economic empowerment impacts environmental quality by
identifying several pollutants.

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Appendix

Table A1: List of Panel Countries

Burundi Ivory Coast Malawi Togo

Botswana DRC Central African Republic Mali
Burkina Faso Mauritius Chad Mozambique
Congo Rwanda Uganda Lesotho
Cameroon Madagascar Senegal Niger
Sierra Leone Nigeria Zambia Tanzania
Source: Authors.

Table A2: Definition of variables

Variables Signs Definition of Variables Sources

(Measurement)
Foreign Direct FDI Foreign direct investment (% GDP) World Bank
Investment
Natural Resources RSSN Total natural resources (% GDP) World Bank
Trade Openness Trade Total imports and exports to GDP World Bank
Urbanization Urbanization Population in urban agglomerations World Bank
over 1 million (% of total
population)
Economic WEE Number of self-employed women World Bank
empowerment out of the total number of employed
women
Renewable Energy ENR Renewable energy consumption (% World Bank
of total final energy consumption)
Environmental Emissions of CO2 emissions (metric tons per World Bank
quality CO2 capita)
ICT ICT The number of internet users per World Bank
100 inhabitants
Source: Authors.