The Role of Foreign Aid and Remittance Inflows on Ecological Footprints and Pollution Levels in Sub-Saharan Africa
DOI:
https://doi.org/10.51137/wrp.ijsbe.624Keywords:
Foreign Aid, Sustainable Bonds, Remittances, Economic Resilience, Ecological FootprintsAbstract
Streamlined foreign finances accelerate sustainable transformative economies and reducing ecological footprints. Sub-Saharan African (SSA) countries are reeling from heavy debt coupled with absence of eco-investments and foreign aid overdependence. Limited transition towards low-carbon future risked dignified life, quality health, water and zero poverty, among sustainable development goals.This paper investigated the role of foreign aid and remittance inflows on ecological footprints and pollution levels from a census of SSA from 1990 to 2023. Regressions involved canonical correlations and GMM estimations. Persistent lagged values of EFPRD and AQI over current pollutions resulted from past regulatory challenges, clean energy costs and limited green investments. Increasing ihs_REM_IGDP and ODA_NPCP caused high ecological footprints and air pollutions while ODA_NGDP caused a reduction with negligible effect due to their statistical insignificance. Moreover, Instrument variables from lagged values were valid given Arellano-Bond tests at AR (1) were significant at 0.05, AR (2) were insignificant, while instrument counts and Hansen tests were valid. We recommend policymakers to develop blended sustainable financial models to spur economic resilience through private sector sustainable entrepreneurships while green finance social bonds earmarked for diaspora remiitances should be facilitated for attainment of SDG’s through collaborative funding of healthcare systems and resilient community empowerment projects.
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Copyright (c) 2026 David Makokha, Dr. Charles Githira, Dr. Gladys Bunyasi (Author)
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