Affiliation:
1. Laboratoire de Recherche en Economie Fondamentale et Appliquée University of Dschang Dschang Cameroon
2. Laboratoire de Recherche en Economie Fondamentale et Appliquée, Centre d'Etudes et de Recherches en Management et Economie University of Dschang Dschang Cameroon
3. CERME University of Dschang Dschang Cameroon
Abstract
AbstractThe economic impact of defence spending is one of the most hotly debated issues today. Due to instability and security deficits in many countries around the world, many countries are devoting a greater proportion of their budgets to defence spending, with adverse consequences for the environment. On this basis, the aim of this study is to examine the correlation between military spending and environmental degradation, and to test whether economic progress serves as a transferable channel. To do this fixed‐effects estimates, Driscoll–Kraay, Lewbel (2SLS), Oster, structural VARs and quantiles were used. The analysis showed a significant and positive effect of military spending on designated environmental markers such as nitrous oxide, methane and carbon dioxide. This implies that although they do not manufacture weapons, African countries are affected by military spending, which contributes to environmental degradation. It is therefore essential that military spending is regulated in Africa, as the influx of weapons exacerbates conflicts on the continent. Moreover, economic growth is an important factor in transmitting the impact of military spending. On the other hand, African governments need to improve their systems of governance and address long‐standing inequalities in income, education, gender, access to basic services and other aspects. In doing so, countries that have experienced conflict in the past will be able to redirect their military spending towards sectors that bring greater prosperity and prioritise environmental protection.
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