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Environment, Innovation and Agriculture

Paper Session

Saturday, Jan. 3, 2026 8:00 AM - 10:00 AM (EST)

Loews Philadelphia Hotel, Franklin
Hosted By: African Finance and Economics Association
  • Chairs:
    Maru Etta-Nkwelle, Howard University
  • Belinda Archibong, Johns Hopkins University

Minimum Subsistence Requirement and the Environmental Kuznets Curve

Lackson Daniel Mudenda
,
Colby College

Abstract

This paper presents a theoretical framework that addresses some of the limitations
of growth models by incorporating specific characteristics of developing countries.
One specific characteristic the paper incorporates is the minimum consumption
requirements, which are proxied by the poverty headcount. By considering both the
demand and supply sides and taking into account subsistence consumption needs,
the study examines the behaviour of the environmental Kuznets curve (EKC) in a
developing country setting. An endogenous growth model is utilised, which takes
into account the minimum consumption requirement, to study these behaviours.
The theoretical analysis confirms the existence of the EKC and sustainable long-term
growth, but also reveals that the presence of a minimum consumption
requirement (MCR) delays the turning point of the EKC. Using data for low and
middle-income countries from the World Development Indicators (WDI) and Penn
World Tables (PWT 10), the paper estimates the relationships of the theoretical
pathways. To further examine these findings, the paper conducts simulations using
empirically estimated coefficients to confirm that the EKC is delayed among the
high-poverty developing countries relative to the low-poverty countries. By doing
so, this research contributes to a better understanding of the EKC phenomenon
and its implications for sustainable development.

Building a Better Africa for Tomorrow’s Generation Through Sustainable Development and Innovation

Allan Kithi
,
Livestock Research Centre

Abstract

Building a Better Africa for Tomorrow’s Generation Through Sustainable Development and Innovation

A Comparative Analysis of Kenya’s Water Sector Performance Trajectory: In the Pre – and Post-Devolution Eras, in the Context of WASREB’s Key Performance Indicators.

Kent Alwaka Mukoya
,
Nairobi City Water and Sewerage Company
Monicah Nzambi Tuli
,
Nairobi City Water and Sewerage Company
Mbutu Mwaura
,
Nairobi City Water and Sewerage Company
Joseph Karanja
,
Nairobi City Water and Sewerage Company

Abstract

A Comparative Analysis of Kenya’s Water Sector Performance Trajectory: In the Pre – and Post Devolution Eras, in the Context of WASREB’s Key Performance Indicators. Access to water services is essential for realizing sustainable development and poverty reduction. The International United Nations (UN) Sustainable Development Goal No. 6 envisages universal and equitable access to safe water for all by the year 2030, primarily as an impetus for the actualization of these holistic UN objectives which aims eradication of poverty at the fall of the year 2030. In line with global efforts and aspirations on attainment of water sector set goals, the Kenya government has constantly evaluated its sector’s policy framework to resonate with the international trajectory with a focus of realizing the global water sector efficacy. In the year 2010, the country repealed its constitution. Among the raft of constitutional changes, was the devolution of provision of water and sanitation services to the county governments. This transition restructured the governance of water services, aiming to enhance equity, efficiency, and local accountability. However, despite this dream, performance progress on the sector’s key performance indicators as reflected by the sector’s regulator, Water Services Regulatory Board (WSERB) indicates that, the performance has been uneven across the devolved units (the counties). The study aims at comparing the national performance trends of the water services before and after devolution to provide evidence of governance effectiveness and sectorial reforms outcomes. Ultimately, the findings will inform policy interventions aimed at enhancing sector performance and accelerating the achievement of SDG 6 within the devolved governance framework.

Economic Impacts of Climate Adaption Strategies in Low- Income West African Countries

Gbidum Sunday Tote
,
Central Bank of Nigeria
Olajide Oladipo
,
Nile University of Nigeria
Abdul-Azeez Elayo
,
Nile University of Nigeria

Abstract

This study examines the economic impacts of climate adaptation strategies in low-income West African countries between 2000 and 2024. It focuses on four key indicators: renewable energy consumption, irrigated agricultural land, greenhouse gas (GHG) emissions reduction, and forest area under sustainable management. These indicators are assessed for their roles in enhancing economic resilience, promoting sustainable livelihoods, and supporting environmental sustainability in a region acutely vulnerable to climate change. Using panel data from selected low-income ECOWAS countries, the research applies fixed effects and system GMM estimation techniques to analyze the relationship between climate adaptation measures and economic performance, particularly in terms of GDP growth, agricultural productivity, and green employment. The findings indicated that greater investment in renewable energy reduces reliance on fossil fuels, improves energy access, and boosts productivity. Expanding irrigated farmland enhanced food security and raised rural incomes. Efforts to reduce GHG emissions—through cleaner technologies and reforestation—are associated with increased access to international climate finance and improved public health outcomes. Additionally, sustainable forest management supports ecological stability and drives income generation through conservation and forest-based industries. The study concludes that well-coordinated and integrated climate adaptation strategies deliver significant economic benefits. It advocates strengthened policy frameworks, increased public and private sector investment, and enhanced institutional capacity to effectively scale these interventions across the region. These efforts are essential for building climate-resilient economies and advancing sustainable development in West Africa.

Modeling Maize Price Volatility in Sub-Saharan Africa: A GARCH-X Approach

Fafanyo Asiseh
,
North Carolina A&T State University, Greensboro

Abstract

This study examines maize price volatility in Nigeria, Gambia, the Democratic Republic of Congo (DRC), Burundi, and Burkina Faso using GARCH-X models. Monthly price data from 2013 to 2023 are analyzed, incorporating exogenous variables such as exchange rates, crude oil prices, fertilizer prices, global maize prices, GDP per capita, and domestic maize supply. The Augmented Dickey-Fuller test confirms stationarity, while the ARCH-LM test validates volatility, justifying the use of GARCH-type models. Model comparison using AIC, BIC, and likelihood-ratio tests confirm that the GARCH-X model outperforms the standard GARCH model, demonstrating that exogenous factors enhance volatility modeling. Findings indicate that exchange rates significantly influence maize price volatility in DRC and Burkina Faso. In contrast, crude oil prices impact maize price volatility in the Gambia and Burkina Faso. In Nigeria, GDP per capita and domestic maize supply are key drivers of maize price volatility. Additionally, the GARCH-X model shows lower volatility persistence, suggesting external factors help stabilize price fluctuations. The results highlight the need for targeted policy interventions, including exchange rate stabilization, energy diversification, and investment in domestic production. This study enhances the understanding of maize price risk in sub-Saharan Africa and underscores the role of macroeconomic factors in market stability.

Formal and Informal Finance in Developing Countries: Evidence from Zambia

Anthony Simpasa
,
African Development Bank
Bumi Camara
,
African Development Bank
Martin Nandelenga
,
African Development Bank

Abstract

Financial exclusion remains inextricably linked to poverty, vulnerability, and food insecurity in many developing countries. Governments have sought to expand formal finance, often with the aim of replacing informal systems. Yet, stalled progress and the persistence of informal providers raise important policy questions. Using household survey data from 12,781 households across Zambia’s ten provinces, this paper examines how access to formal institutions affects informal financial use. The study uses both the probit and multinomial logit, and the findings show that proximity increases use of formal services but does not reduce demand for informal ones. The relationship differs by context: in urban areas, formal and informal finance are complementary, while in rural areas, informal services substitute for formal ones. Therefore, policies should focus on expanding formal access while strengthening linkages with informal providers. Efforts to replace informal systems risk undermining financial inclusion, whereas recognizing their complementary and substitutive roles can enhance resilience and outreach.

Discussant(s)
Kent Alwaka Mukoya
,
Nairobi City Water and Sewerage Company
Eric Ayamga
,
Texas Tech University
Gbidum Sunday Tote
,
Central Bank of Nigeria
Lackson Daniel Mudenda
,
Colby College
Allan Kithi
,
Livestock research centre
Monicah Nzambi Tuli
,
Nairobi City Water and Sewerage Company
JEL Classifications
  • Q0 - General