Environmental Taxes Worsen Pollution and Joblessness in Africa, Undermining Sustainability
Environmental taxes in African countries do not always lead to both reduced pollution and increased employment, as suggested by the double dividend hypothesis. A study on Cameroon, Ivory Coast, Mali, South Africa, and Uganda from 1994 to 2017 found that environmental taxes increased pollution and unemployment in some countries, while only improving employment in others. The results suggest that using taxation as a financial incentive may be more effective than strict regulations in addressing environmental degradation and unemployment.