Transposed Second-Generation Environmental Kuznets Curve, Changing Climate Patterns, and Selected Development Indicators

This paper examined the impact of changing climate patterns (represented by square and cubic CO2 emissions) on selected development drivers (proxy gross domestic product [GDP] per capita [GDPC] official assistance [ODA]). Environmental Kuznets curve (EKC) provided theoretical backdrop this study, referred to as core second-generation EKC (SGEKC) hypothesis. SGEKC was modified obtain transposed SGEKC. The conceptualized based one-way criticism EKC. An unbalanced PMG (ARDL) method utilized investigate GDPPC–(to capture hypothesis) ODA–(to pollution haven in West African Monetary Zone (WAMZ). therefore, leveraged data from world indicators between 1970 2019. result showed that emissions GDPC has a long-run N-shaped. outcome model (in is consistent with On other hand, ODA an inverted N-shaped long run. relationship does not support pollution-haven hypothesis long-run. results, imply have more disruptive income less ODA. In short-run, existence inverted-N N-shapes for (SGEKC hold) (presence haven) respectively. conclusion, present threat economy WAMZ which turn could disrupt economic agents’ interactions, de-optimize aggregates equilibrium, well negatively affect attainment regional objectives. study recommends WAMZ’s government(s) should fast-track implementation robust carbon pricing mechanism abatement policy would enable mitigation policy, improve regions nationally determined contributions (NDCs) targets, insulate economies uncertainty associated change.