Examining the drivers of environmental degradation in Sub-Saharan Africa using system generalized method of moments

Climate change remains one of the most pressing global challenges, posing a significant threat to the environment and humanity. This study examined the drivers of environmental degradation in SSA using a balanced panel of 28 countries covering the period 2000–2021. The study employed a two-step system generalized method of moments (GMM) complemented by Driscoll-Kraay estimation and an alternative system GMM specification for robustness. Unlike prior studies that treat human capital as a single construct, this study distinguishes between health and education investments and analyzes the robustness of their environmental effects using alternative human capital proxies. The findings indicate that health expenditure, logarithm of energy use, and foreign direct investment (FDI) are the robust determinants of CO 2 emissions in SSA. The results reveal that the environmental effects of human capital differ across its dimensions. Health expenditure is consistently associated with lower CO 2 emissions, whereas education expenditure does not exert a statistically significant effect on environmental quality. The baseline estimation provides evidence consistent with the inverted U-shaped Environmental Kuznets Curve (EKC) hypothesis with an estimated turning point of approximately $2,186 (constant 2015 US$) and lies within the sample range. However, this relationship becomes weaker under the robustness analyses. The Pollution Haven Hypothesis (PHH) is supported in SSA, as FDI positively contributes to CO 2 emissions. The finding suggests that achieving environmental sustainability in SSA requires integrated policies that promote environmentally sustainable health systems, improve the quality of education through green curricula, facilitate the transition to cleaner energy, and strengthen environmental governance of foreign investment. Collectively, these policy measures can contribute to the achievement of Sustainable Development Goals, particularly SDG 13 (Climate Action).