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Economic sustainability of the gold mining industry in Burkina Faso

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  • Ouoba, Youmanli

Abstract

This study analyzes the economic sustainability of the gold mining industry in Burkina Faso. For this purpose, the green gold GDP is used. First, the depreciation of gold stock was estimated using the concept of Hotelling rent and second, the environmental damage from gold mining companies was estimated. The human capital and the “double difference” approaches are used to estimate the environmental damage related to water and air quality deterioration. The results show that approximately 40% of the mining added value represents natural capital depreciation. The depreciation of natural capital is more important than mining revenues invested by the government. This study provides evidence that a sort of resource curse may exist, and as a result, a part of the resource rent is spent inefficiently.

Suggested Citation

  • Ouoba, Youmanli, 2017. "Economic sustainability of the gold mining industry in Burkina Faso," Resources Policy, Elsevier, vol. 51(C), pages 194-203.
    • Handle: RePEc:eee:jrpoli:v:51:y:2017:i:c:p:194-203
    DOI: 10.1016/j.resourpol.2017.01.001
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    Cited by:

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    2. Li, Chong-Mao & Nie, Rui, 2017. "An evaluating system for scientific mining of China's coal resources," Resources Policy, Elsevier, vol. 53(C), pages 317-327.
    3. Xavier, Lúcia Helena & Giese, Ellen Cristine & Ribeiro-Duthie, Ana Cristina & Lins, Fernando Antonio Freitas, 2021. "Sustainability and the circular economy: A theoretical approach focused on e-waste urban mining," Resources Policy, Elsevier, vol. 74(C).
    4. Vladimir Zhuravlyov & Natalia Varkova & Sergei Aliukov & Tatyana Khudyakova, 2018. "Strategic Aspects of Ensuring Sustainable Development of Gold Enterprises of the Russian Federation," Sustainability, MDPI, vol. 10(12), pages 1-18, November.
    5. Yıldız, Taşkın Deniz, 2023. "How can shares be increased for indigenous peoples in state rights paid by mining companies? An education incentive through direct contribution to the people," Resources Policy, Elsevier, vol. 85(PA).
    6. Youmanli Ouoba, 2023. "Testing the necessary conditions for sustainability in the mining sector in Burkina Faso," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 36(1), pages 1-12, January.
    7. Youmanli Ouoba, 2017. "Artisanal versus industrial mining: impacts on poverty in regions of Burkina Faso," Mineral Economics, Springer;Raw Materials Group (RMG);Luleå University of Technology, vol. 30(3), pages 181-191, October.

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    More about this item

    Keywords

    Q32; Q51; Natural capital depreciation; Royalties; Green gold GDP; Mining companies; Economic sustainability; Burkina Faso;
    All these keywords.

    JEL classification:

    • Q32 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - Exhaustible Resources and Economic Development
    • Q51 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Valuation of Environmental Effects

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