Climate change and inclusive growth in Africa

Figures & data

Table 1. Variables description

Variable	Description	Source
Incl.	The composite index of poverty and Palma’s ratio using principal component analysis.	Authors’ computation
Poverty	Share of population in extreme poverty (in percentage)	World Bank PovcalNet
Palma	The ratio of the top 1% share is the share of income/wealth accruing to the 1% highest incomes/wealth in the country over the bottom 50% share is the share of income/wealth accruing to the bottom 50% of the population.	Authors’ computation using data from the World Inequality Database
Temp.	Temperature anomalies (measured in degrees Celsius)	FAOSTAT
GE	Government final expenditure as a percentage of GDP	World Development Indicators
IQ	Institutional quality: A Principal component of world governance indicators	World Governance Indicators
Fossil	Fossil fuel energy consumption (% of total)	World Development Indicators
**Pop.	Total population	World Development Indicators
**GDP	GDP (constant 2015 US$)	World Development Indicators

** Data was transformed to log form.

Table 2. Descriptive statistics

Variable	sample	Mean	Std. Dev.	Min	Max
Incl	overall	2.67E–10	1.076	−1.716	8.062
	between		0.952	−1.613	2.259
	within		0.518	−1.405	5.803
Palma	overall	1.575	1.034	0.511	12.325
	between		0.858	0.523	4.541
	within		0.588	−0.609	10.269
Poverty	overall	0.358	0.267	0.000	0.953
	between		0.236	0.000	0.822
	within		0.131	−0.465	0.800
Temp	overall	0.878	0.469	−0.663	2.595
	between		0.241	0.321	1.550
	within		0.404	−0.652	2.487
IQ	overall	−2.59E–09	2.194	−6.262	5.517
	between		2.118	−5.181	5.012
	within		0.645	−2.872	2.662
GDP	overall	22.966	1.594	18.867	26.974
	between		1.556	19.362	26.351
	within		0.441	19.858	24.331
GE	overall	15.343	7.309	0.911	62.133
	between		6.834	4.454	38.688
	within		3.838	−0.770	46.018
Pop	overall	15.808	1.596	11.244	19.144
	between		1.171	13.038	17.498
	within		1.100	11.812	19.623
Fossil	overall	39.104	32.388	0.000	99.978
	between		32.930	0.000	99.794
	within		4.786	19.740	54.586

Figure 1. Relationship between climate change and inclusive growth.

Source: Authors’ computation.

Table 3. Cross-sectional dependence test

Variable	CD-test	P. value	corr	abs(corr)
Incl	29.25	0.00	0.172	0.582
Temp	91.02	0.00	0.525	0.529

Source: Author’s computation

Table 4. Slope homogeneity test

	Delta	p-value
	5.664	0
adj.	9.281	0

H0: slope coefficients are homogenous.

Source: Authors’ computation.

Table 5. Cross-sectional panel unit-root test

Variable	Z-Bar	P. value
Incl	−3.828	0.000
Temp	−13.315	0.000

Source: Authors’ computation.

Table 6. Inclusive growth and climate change

Dep. Var.: Inclusive growth measure	Coef.	Std. Err.
Temp	0.052***	0.020
IQ	−0.007	0.022
GDP	−0.491**	0.234
GE	−0.001	0.002
Pop.	0.272**	0.121
fossil	0.001	0.005
cdp^#	0.632	0.551
_cons	1.188	5.618
Wald Chi (P.value)	16.46 (0.0115)
RMSE	0.0487

Standard errors in parentheses, *** p<0.01, ** p<0.05, * p<0.1, ^#cdp is common dynamic process.

Source: Authors’ computation.

Table 7. Inclusive growth and climate change (with lag)

Dep. Var.: Inclusive growth measure	Coef.	Std. Err.
lag(temp)	0.042***	0.014
IQ	−0.002	0.023
GDP	−0.486**	0.229
GE	0.000	0.002
Pop.	0.269**	0.133
fossil	0.003	0.005
cdp^#	0.688	0.646
Constant	−0.461	5.471
Wald Chi (P.value)	17.43 (0.008)
RMSE	0.0495

Standard errors in parentheses, *** p<0.01, ** p<0.05, * p<0.1, ^#cdp is common dynamic process.

Source: Authors’ computation.

Table 8. Inclusive growth with temperature and lag

Dep. Var.: Inclusive growth measure	Coef.	Std. Err.
temp	−0.093	0.058
lag(temp)	0.086*	0.051
IQ	−0.015	0.027
GDP	−0.516***	0.192
GE	0.000	0.002
Pop.	0.144*	0.080
fossil	−0.001	0.004
cdp^#	0.735	0.672
Constant	3.361	4.242
Wald Chi (P.value)	16.39 (0.022)
RMSE	0.047

Standard errors in parentheses, *** p<0.01, ** p<0.05, * p<0.1, ^#cdp is common dynamic process.

Source: Authors’ computation.

Table

Dep. Var.: Inclusive growth measure	Coef.	Std. Err.
Temp	0.0515***	0.017
IQ	−0.048	0.046
GDP	−0.48147*	0.269
GE	0.006	0.005
Pop.	1.092*	0.582
fossil	−0.002	0.008
cdp	1.415*	0.742
_cons	−7.064	7.335
Wald Chi (P.value)	19.73 (0.003)
RMSE	0.0487

Standard errors in parentheses, *** p < 0.01, ** p < 0.05, * p < 0.1

Table

Dep. Var.: Inclusive growth measure	Coef.	Std. Err.
lag(temp)*	0.024*	0.014096
IQ	−0.06*	0.033276
GDP	−0.3691	0.282272
GE	0.009**	0.004287
Pop.	1.093	0.701119
fossil	0.0021	0.010701
cdp	1.797**	0.839628
Constant	−10.507	8.960932
Wald Chi (P.value)	28.45 (0.000)
RMSE	0.0495

Standard errors in parentheses, *** p < 0.01, ** p < 0.05, * p < 0.1

Table

Dep. Var.: Inclusive growth measure	Coef.	Std. Err.
temp	0.037*	0.019476
lag(temp)	0.035**	0.016153
IQ	−0.073*	0.04255
GDP	−0.423	0.293086
GE	0.008**	0.004082
Pop.	1.099*	0.661343
fossil	0.004	0.009308
cdp	1.691**	0.81465
Constant	−9.09	8.157253
Wald Chi (P.value)	15.29 (0.032)
RMSE	0.047

Standard errors in parentheses, *** p < 0.01, ** p < 0.05, * p < 0.1

Data availability statement

The data used for this study is available upon request.