Tracking environmental sustainability pathways in Africa: Do natural resource dependence, renewable energy, and technological innovations amplify or reduce the pollution noises?

Abstract

The global economy is experiencing the most challenging era of climate change beyond what is evident in the pre-industrial age. Although Africa's share of global greenhouse gas (GHG) is minimal, the ensuing effects hit hard on the continent. Hence, the present study provides the first comprehensive empirical assessment of environmental sustainability in Africa within the novel STIRPAT framework. This study critically examines the impacts of natural resource dependence, renewable energy, urbanization, technological innovations, and structural transition on environmental pollution proxied by carbon emissions, ecological footprint, and PM2.5 air pollution from 1990 to 2019 in five top carbon-emitting African countries. The empirical evidence is based on advanced panel estimators comprising CS-ARDL, CCEMG, and AMG robust to cross-sectional dependence (CSD). The quantile regression efficient for exploring the conditional distribution effects is equally employed alongside Dumitrescu-Hurlin panel granger causality test. The preliminary tests reveal the presence of CSD and heterogeneity of the series, which led to the conduct of second-generation unit root and cointegration tests. The main empirical results show that renewable energy, technological innovations, and structural transition reduce environmental pollutants from surging based on the observable negative signs. By implication, these indicators support Africa's path to environmental sustainability. On the flip side, resource dependence and urbanization amplify the surge. The feedbacks from quantile regression provide sturdy support for the main estimators. The granger causality feedbacks support the existence of bidirectional and unidirectional causality among the variables. Based on the findings, policies that promote sustainable environment are formulated.

Exploring the heterogeneous effects of technological innovations on environmental sustainability: Do structural change, environmental policy, and biofuel energy matter for G7 economies?

“…It thus implies that ascertaining causal association between two interrelating variables requires the engagement of causality test. 22 It is instructive to clarify that the twin issues of CSD and SHT necessitate the adoption of the Dumitrescu–Hurlin. 58 The model explaining the Dumitrescu–Hurlin (DH) causality test can be given thus: The DH causality test relies on the proposition that coefficients of the parameter change across i but constant by time false(tfalse).…”

“…For instance, regarding the significance of structural change, the pervasive impacts of global warming are propelling nations to purse a gradual transition from carbon-intensive driven sectors such as agricultural and manufacturing sectors to the service sector observed to contribute less or insignificantly to CO 2 emissions surge. 22 Precisely, available statistics show that the service sector contributes the most to gross domestic products (GDP) in the G7 economies with values given as thus: Canada (67%), France (70%), Germany (62%), Italy (66%), Japan (69%), the United Kingdom (71%), and the United States (77%). 23 Besides, the contributions of these countries in major global policies on environmental sustainability suggest how sturdy their environmental regulations are pursed to safeguard the ecosystem.…”