THE ROLE OF FINANCIAL DEVELOPMENT, EDUCATION AND ECONOMIC GROWTH ON ENVIRONMENTAL QUALITY IN CAMEROON

Abstract

Purpose - The using of economic growth as an instrument to alleviate poverty in developing countries remains a challenge, as economic growth often emerges with greenhouse gases. In this regard, this study aimed to examine the impact of education, financial development, and economic growth on environmental quality in Cameroon. Methodology – This study employs the Autoregressive Distributive Lag (ARDL) and the Toda-Yamamoto causality test methods to examine the relationship between the above-mentioned variables and carbon dioxide emissions in Cameroon’s for the period 1980-2016. Findings- From the ARDL bounds tests, we found that a long-run relationship exists between the variables and the Toda-Yamamoto causality tests reveal multiple unidirectional causalities, from carbon dioxide to financial development, economic growth, and foreign direct investment and from economic growth to human capital. Similarly, bidirectional causality runs between human capital and energy consumption, between human capital and financial development and lastly, between financial development and foreign direct investment. Conclusion- It is therefore crucial for the government to develop policies that mitigate the spread of pollution and to encourage the practice of green education and sustainable finance in Cameroon.

Keywords

• Cameroon
• human capital
• economic growth
• financial development
• environmental quality

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