Policy Measures for Advancing Environmental Sustainability: Assessing the Impact of Governance Efficiency and Fiscal Approach in Sub‐Saharan Africa

ABSTRACT This study navigates the complex intersection of fiscal policy, governance quality, and environmental sustainability within Sub‐Saharan Africa (SSA). Utilizing a dataset from 2005 to 2020 encompassing 33 SSA countries, the study employs the environmental load capacity factor (LCF) to assess environmental sustainability within the STIRPAT framework as well as unravel the nexus between fiscal strategy and governance quality. Key findings reveal that the impact of government expenditure on LCF varies across quantiles. The positive impact of the interaction between governance quality and government expenditure on LCF accentuates the significance of effective governance in bolstering sustainability efforts. These findings offer pertinent implications for SSA policymakers.