Exploring the nexus between natural resources depletion, renewable energy and environmental degradation in sub-Saharan Africa: A panel quantile regression

Abstract

This study explores the nexus between natural resources depletion, renewable energy and environmental degradation in 48 sub-Saharan African (SSA) countries from the period 2000 to 2020 using generalized panel quantile regression. The findings show that, at 90th quantiles the magnitude of natural resources depletion is positive and stronger associated with environmental degradation in SSA. This is probably attributed by countries with higher natural resources depletion such as Congo Republic (37.10%), Equatorial Guinea (27.60%), Angola (21.14%), Gabon (12.84%), Chad (12.19%), Burundi (8.92%), Uganda (6.16%) and Congo Democratic (5.24%). Furthermore, at lower quantiles (30th and 10th ), natural resources depletion negatively affects environmental degradation in SSA. This might be attributed by countries with negligible natural resource depletion like Carbo Verde (0.16%), Central African Republic (0.04%), Comoros (1.17%), Eswatini (0.01%), Gambia (0.92%), Guinea-Bissau (0.33%) and Madagascar (0.07%). Moreover, the findings show that renewable energy reduces environmental degradation and is statistically significant at almost all quantiles. Finally, the findings reveal that industrialization, trade and economic growth all contribute to environmental degradation (i.e. carbon emissions) in SSA. The policy implication is to adopt measures that reduce poverty levels, which is linked to natural resources depletion and scaling up renewable energy use technologies for SSA. Concurrently, we propose the natural resource management to be multi-sectoral and integrated into institutional structures by allocating fund to the natural resources sector for intervention programs in SSA countries. All these initiatives will help to reduce carbon emissions and protect the environment in future.