Ecological Response to Industrialisation Drivers in Africa

Abstract

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.