An Empirical Study on China's Foreign Aid Policy and Its Impact on Air Pollution in Sub-Saharan Africa

China’s growing relationship with the developing world has sparked much debate amongst the international community. Yet, little is known of China’s foreign aid policy but it seems to be concentrated on strategic and political objectives. This study aims to unravel the motives behind such aid, and investigate the potential impact it has on Sub-Saharan Africa’s fragile environment. Data on Chinese aid commitments are obtained from AidData on 48 countries between the years 2000-2010, and that of CO2 emissions, from the World Bank database. Using an OLS Panel FE estimation, commercial self-interests are found to dominate China’s aid allocation. Results indicate recipient countries are; resource-rich, open towards Chinese exports, and politically unstable. No evidence is found to suggest China is seeking to oust American and European influence on the continent, instead, evidence suggests Australia, Canada, Japan, Korea and New Zealand are raising the carbon footprint in Sub-Saharan Africa, while China has no empirical effect.