Does the size of the informal sector explain vulnerability to climate change in Africa ?

Abstract In a context marked by an increase in the adverse effects of climate change in Africa, this paper aims to analyze the effect of the size of the informal sector on vulnerability to climate change in 42 African countries from 1995 to 2017. The results obtained by the Random Effects (RE) method applied to panel data, show that the size of the informal sector increases the vulnerability to climate change (VCC) in African countries. Moreover, the effect of the informal sector on climate change vulnerability is weaker in English-speaking countries compared to French-, Portuguese- and Arabic-speaking countries. Robustness analyses using the Generalized System Moments (GSM) technique confirm the existence of a positive relationship between the size of the informal sector and the vulnerability of African countries to climate change. To this end, we recommend strengthening mechanisms to combat informal economic activities through the promotion of property rights, the fight against corruption and the implementation of climate change adaptation policies. JEL classification: O17; 013; Q53