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Can financing technological development programs mitigate mineral resource consumption-related environmental problems faced by Sub-Saharan African nations?

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  • Gao, Yirui
  • Murshed, Muntasir
  • Ozturk, Ilhan
  • Saqib, Najia
  • Siddik, Abu Bakkar
  • Alam, Mohammad Mahtab

Abstract

Much like the Global South, countries located in the Sub-Saharan African region have plentiful deposits of critical minerals. However, mineral dependency in these countries is assumed to be inflicting detrimental impacts on their environmental conditions. Hence, this study tests this assumption by utilizing data from 30 developing nations from this mineral-rich region. Specifically, the environmental influences associated with mineral consumption, technological development financing, financial globalization, and urbanization are explored. Based on the analytical outcomes, derived using robust panel data analytical methods, it is certified that mineral resource dependence is responsible for triggering carbon emission-led environmental problems. Besides, disbursement of technological development funds is found to directly improve environmental conditions while indirectly limiting the environmental distresses exerted by the mineral industries located across Sub-Saharan Africa. Moreover, validating the pollution haven hypothesis, the findings endorse the environmental condition-degrading impact of foreign direct investment flowing into the concerned nations. Lastly, urbanization is found to be responsible for raising environmental concerns by boosting the carbon emission figures further. Thus, it is recommended that the governments of the selected Sub-Saharan African nations make their mineral industries more ecologically friendly, provide ample financial support for technological development programs, attract clean foreign direct investment, and implement environmentally-sustainable urbanization policies.

Suggested Citation

  • Gao, Yirui & Murshed, Muntasir & Ozturk, Ilhan & Saqib, Najia & Siddik, Abu Bakkar & Alam, Mohammad Mahtab, 2023. "Can financing technological development programs mitigate mineral resource consumption-related environmental problems faced by Sub-Saharan African nations?," Resources Policy, Elsevier, vol. 87(PA).
    • Handle: RePEc:eee:jrpoli:v:87:y:2023:i:pa:s0301420723010541
    DOI: 10.1016/j.resourpol.2023.104343
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    Cited by:

    1. Musah, Mohammed & Onifade, Stephen Taiwo & Ankrah, Isaac & Gyamfi, Bright Akwasi & Amoako, George Kofi, 2024. "Achieving net-zero emission target in Africa: Are sustainable energy innovations and financialization crucial for environmental sustainability of sub-Saharan African state?," Applied Energy, Elsevier, vol. 364(C).
    2. Kohnert, Dirk, 2024. "The impact of the industrialized nation’s CO2 emissions on climate change in Sub-Saharan Africa: Case studies from South Africa, Nigeria and the DR Congo," MPRA Paper 120212, University Library of Munich, Germany.
    3. Song, Malin & Du, Juntao, 2024. "Mechanisms for realizing the ecological products value: Green finance intervention and support," International Journal of Production Economics, Elsevier, vol. 271(C).
    4. Murshed, Muntasir, 2024. "The role of Fintech financing in correcting ecological problems caused by mineral resources: Testing the novel ecological deficit hypothesis," Resources Policy, Elsevier, vol. 88(C).
    5. Kohnert, Dirk, 2024. "L’impact des émissions de CO2 des pays industrialisés sur le changement climatique en Afrique subsaharienne: Études de cas d’Afrique du Sud, du Nigeria et de la RD Congo [The impact of the industri," MPRA Paper 120231, University Library of Munich, Germany.
    6. Kohnert, Dirk, 2024. "Auswirkungen der CO2-Emissionen der Industrienationen auf den Klimawandel in Subsahara-Afrika: Fallstudien aus Südafrika, Nigeria und der DR Kongo [The impact of the industrialized nation's CO2 emi," MPRA Paper 120252, University Library of Munich, Germany.

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