Ecological Response to Industrialisation Drivers in Africa

Abstract

More than ever, ecological conditions are fast deteriorating due to rising greenhouse gas emissions. These emissions are significantly propelled into the atmosphere by growth in specific human activities that also advance industrialisation. It is opined that these activities will further rise significantly in developing countries since industrialisation can lead to rapid economic modernisation. Consequently, this study examined Africa's long-term ecological response to these rising cogent industrialisation drivers, including manufacturing activities, resource wealth, urbanisation, income growth, globalisation, and human capital development. A panel analyses of 32 African countries was conducted between 1991 and 2019. Empirical inferences were derived through a battery of advance estimation techniques. They include second-generation panel unit root and cointegration tests, generalised estimating equation, generalised least squares mixed effect model, dynamic common correlated effect, Driscoll-Kraay, and the panel corrected standard error methods. These robust econometric techniques prevented methodological challenges in prior studies, such as heterogeneity, cross-sectional dependence, and heteroscedasticity. The study observed that an increase in manufacturing value-added, natural resources wealth, income growth, globalisation, and human capital diminishes ecological quality in Africa. However, urbanisation was found to be environmentally-enhancing. The study proposed relevant policy measures to mitigate environmental pollution from industrialisation drivers. JEL Classification:N57, O13, O14.

Renewable Energy and Ecological Sustainability in Africa: Does Foreign Debt and Financial Globalisation Matter?

“…Nevertheless, funding real income growth and energy utilisation via external borrowing can create environmental deterioration (Katircioglu and Celebi, 2018). Alternatively, investing foreign borrowing into heavy industry, real estate, and the construction sector can surge energy demand and potentially trigger adverse ecological implications (Sun and Liu, 2020;Bese et al, 2022;Aladejare and Nyiputen, 2022). Also, recent studies are beginning to stress the critical role of financial globalisation (FGB) in achieving environmental sustainability.…”

“…This study dwelled on African countries for three principal grounds. First, the continent is a minor carbon emitter globally (Aladejare, 2022a;Aladejare and Nyiputen, 2022). However, Africa's emission growth rate has exceeded other regions, such as East and Central Europe (Fotio et al, 2022).…”

“…Nyangena et al (2019),,Younis et al (2021), andYang and Khan (2022) for East African countries, South Asian economies, BRICS countries, and IEA member countries, respectively concluded that urban growth significantly results in ecological degradation. Similarly, studies such as UNCTAD (2020) andAladejare and Nyiputen (2022) have found that the quest for industrialisation exacerbates poor environmental quality in African economies due to ineffective ecological protection measures. Hence, environmental sustainability cannot be assured when countries fail to use external borrowing for green economic growth and development.The inference that financial globalisation exacts an adverse effect on ecological sustainability is plausible.…”

Does Rising Resources Income, Consumer Prices, Government Outlay, and Globalisation Hinder Africa's Sustainable Development?

“…At their expiration in 2015, 17 SDGs were introduced as agenda for 2030. The launching of the SDGs was on the background that while world economies continue to expedite their development process, they must also not lose focus on the cost of resource depletion, ecological pollution and damage (Zhong et al, 2021; Aladejare and Nyiputen, 2022). Therefore, the SDGs intend to chart a global, comprehensive set of objectives necessary for guiding nations of the world on the trajectory towards sustainable development, which encompasses economic growth, social inclusion, and environmental sustainability (Aladejare et al, 2020).…”

“…Speci cally, African countries may end up worse hit due to the comparatively low investment in ows to the continent (Aladejare, 2022a). Although most economic growth in the continent is resource-earnings driven (Aladejare and Nyiputen, 2022), the adverse effect on the environment can deter sustainable development. This is because natural endowments required for industrial and, by extension, economic growth contribute to environmental pollution and atrophy through detrimental extractive methods (Aladejare, 2022b).…”