IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v98y2024ics0301420724007311.html

The role of natural resources rent, trade openness and technological innovations on environmental sustainability – Evidence from resource-rich african nations

Author

Listed:
  • Deka, Abraham

Abstract

Environmental sustainability is fundamental in ensuring the needs of current generation are not met through exhausting the resources available to meet the needs of the future generations. Nature provides key resources required as factors of production in the production of goods and services. Therefore, it is important to maintain and protect the environment, ensuring that these resources do not deplete. This study investigates the role of technological innovations, trade openness, economic growth and natural resource rents in maintaining environmental sustainability. The data of the top ten natural resource-rich African countries are used for the time ranging from 1996 to 2023. The main novelty of the research is that it considers countries with abundance natural resources in ascertaining the influence of natural resources on environmental sustainability; hence, ascertaining the existence of resource curse in developing nations with abundance natural resources. Data is analysed with the Methods of Moments Quantile Regression that present robust results when heterogeneity and cross-sectional dependency are present. We present that technological innovations, trade openness, renewable energy and governance promote environmental sustainability in these resource-rich nations of Africa. Technological innovations fosters environmental sustainability in the long and short term. We also present that economic growth and natural resource rents worsen the quality of the environment, through raising the emission of carbon. Specifically, natural resource rents significantly raises the emission of carbon in the long term. Policies proposed advocates for the advancement in the rule of law of nations and the promotion of technological innovations.

Suggested Citation

  • Deka, Abraham, 2024. "The role of natural resources rent, trade openness and technological innovations on environmental sustainability – Evidence from resource-rich african nations," Resources Policy, Elsevier, vol. 98(C).
    • Handle: RePEc:eee:jrpoli:v:98:y:2024:i:c:s0301420724007311
    DOI: 10.1016/j.resourpol.2024.105364
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420724007311
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2024.105364?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Miao, Yang & Razzaq, Asif & Adebayo, Tomiwa Sunday & Awosusi, Abraham Ayobamiji, 2022. "Do renewable energy consumption and financial globalisation contribute to ecological sustainability in newly industrialized countries?," Renewable Energy, Elsevier, vol. 187(C), pages 688-697.
    2. Lv, Zhaojiang & Chen, Lan & Ali, Syed Ahtsham & Muda, Iskandar & Alromaihi, Abdullah & Boltayev, Jurabek Yusufovich, 2024. "Financial technologies, green technologies and natural resource nexus with sustainable development goals: Evidence from resource abundant economies using MMQR estimation," Resources Policy, Elsevier, vol. 89(C).
    3. Abid, Mehdi & sakrafi, Habib & Gheraia, Zouheyr & Abdelli, Hanane, 2022. "Does renewable energy consumption affect ecological footprints in Saudi Arabia? A bootstrap causality test," Renewable Energy, Elsevier, vol. 189(C), pages 813-821.
    4. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    5. Becker, Bastian & Fischer, Doris, 2013. "Promoting renewable electricity generation in emerging economies," Energy Policy, Elsevier, vol. 56(C), pages 446-455.
    6. Connolly, D. & Lund, H. & Mathiesen, B.V. & Leahy, M., 2011. "The first step towards a 100% renewable energy-system for Ireland," Applied Energy, Elsevier, vol. 88(2), pages 502-507, February.
    7. Adabor, Opoku, 2023. "The effect of financial development on natural gas resource rent in Ghana," Resources Policy, Elsevier, vol. 83(C).
    8. Ahmed, Zahoor & Asghar, Muhammad Mansoor & Malik, Muhammad Nasir & Nawaz, Kishwar, 2020. "Moving towards a sustainable environment: The dynamic linkage between natural resources, human capital, urbanization, economic growth, and ecological footprint in China," Resources Policy, Elsevier, vol. 67(C).
    9. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    10. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    11. Huang, Yongming & Faraz Raza, Syed Muhammad & Usman, Muhammad, 2023. "Asymmetric role of natural resources dependence, industrialization, and foreign direct investment in China’s economic growth," Resources Policy, Elsevier, vol. 85(PB).
    12. Usman, Muhammad & Balsalobre-Lorente, Daniel & Jahanger, Atif & Ahmad, Paiman, 2022. "Pollution concern during globalization mode in financially resource-rich countries: Do financial development, natural resources, and renewable energy consumption matter?," Renewable Energy, Elsevier, vol. 183(C), pages 90-102.
    13. Huang, Yongming & Raza, Syed Muhammad Faraz & Hanif, Imran & Alharthi, Majed & Abbas, Qaiser & Zain-ul-Abidin, Syed, 2020. "The role of forest resources, mineral resources, and oil extraction in economic progress of developing Asian economies," Resources Policy, Elsevier, vol. 69(C).
    14. Jianjun Zhang & Syed Muhammad Faraz Raza & Yongming Huang & Cheng Wang, 2023. "What affect energy poverty in China? A path towards sustainable development," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 36(2), pages 2111316-211, July.
    15. Muğaloğlu, Erhan & Kuşkaya, Sevda & Aldieri, Luigi & Alnour, Mohammed & Hoque, Mohammad Enamul & Magazzino, Cosimo & Bilgili, Faik, 2023. "Dynamic regime differences in the market behavior of primary natural resources in response to geopolitical risk and economic policy uncertainty," Resources Policy, Elsevier, vol. 87(PB).
    16. Ullah, Asad & Zhang, Qingyu & Raza, Syed Ali & Ali, Sajid, 2021. "Renewable energy: Is it a global challenge or opportunity? Focusing on different income level countries through Panel Smooth Transition Regression Model," Renewable Energy, Elsevier, vol. 177(C), pages 689-699.
    17. Xiaobin, Wang & Wu, Fuxi & Alharthi, Majed & Raza, Syed Muhammad Faraz & Albalawi, Olayan, 2024. "Natural resources, trade and fintech in the era of digitalization: A study of economies involved in Belt and Road Initiative," Resources Policy, Elsevier, vol. 93(C).
    18. Afolabi, Joshua Adeyemi, 2023. "Natural resource rent and environmental quality nexus in Sub-Saharan Africa: Assessing the role of regulatory quality," Resources Policy, Elsevier, vol. 82(C).
    19. Ali, Mumtaz & Joof, Foday & Samour, Ahmed & Tursoy, Turgut & Balsalobre-Lorente, Daniel & Radulescu, Magdalena, 2023. "Testing the impacts of renewable energy, natural resources rent, and technological innovation on the ecological footprint in the USA: Evidence from Bootstrapping ARDL," Resources Policy, Elsevier, vol. 86(PA).
    20. Auty, Richard M., 1994. "Industrial policy reform in six large newly industrializing countries: The resource curse thesis," World Development, Elsevier, vol. 22(1), pages 11-26, January.
    21. Bashir, Muhammad Adnan & Dengfeng, Zhao & Filipiak, Beata Zofia & Bilan, Yuriy & Vasa, László, 2023. "Role of economic complexity and technological innovation for ecological footprint in newly industrialized countries: Does geothermal energy consumption matter?," Renewable Energy, Elsevier, vol. 217(C).
    22. Mukhtarov, Shahriyar & Yüksel, Serhat & Dinçer, Hasan, 2022. "The impact of financial development on renewable energy consumption: Evidence from Turkey," Renewable Energy, Elsevier, vol. 187(C), pages 169-176.
    23. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    24. Ansari, Mohd Arshad, 2022. "Re-visiting the Environmental Kuznets curve for ASEAN: A comparison between ecological footprint and carbon dioxide emissions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 168(C).
    25. Mathiesen, Brian Vad & Lund, Henrik & Karlsson, Kenneth, 2011. "100% Renewable energy systems, climate mitigation and economic growth," Applied Energy, Elsevier, vol. 88(2), pages 488-501, February.
    26. Tan, Qingmei & Yasmeen, Humaira & Ali, Sharafat & Ismail, Hina & Zameer, Hashim, 2023. "Fintech development, renewable energy consumption, government effectiveness and management of natural resources along the belt and road countries," Resources Policy, Elsevier, vol. 80(C).
    27. M. Hashem Pesaran, 2015. "Testing Weak Cross-Sectional Dependence in Large Panels," Econometric Reviews, Taylor & Francis Journals, vol. 34(6-10), pages 1089-1117, December.
    28. Lei, Xiying & Yang, Yao & Alharthi, Majed & Rasul, Farhat & Faraz Raza, Syed Muhammad, 2022. "Immense reliance on natural resources and environmental challenges in G-20 economies through the lens of COP-26 targets," Resources Policy, Elsevier, vol. 79(C).
    29. Sohail Abbas & Shazia Kousar & Amber Pervaiz, 2021. "Effects of energy consumption and ecological footprint on CO2 emissions: an empirical evidence from Pakistan," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(9), pages 13364-13381, September.
    30. Frees, Edward W., 1995. "Assessing cross-sectional correlation in panel data," Journal of Econometrics, Elsevier, vol. 69(2), pages 393-414, October.
    31. Appiah, Michael & Li, Mingxing & Naeem, Muhammad Abubakr & Karim, Sitara, 2023. "Greening the globe: Uncovering the impact of environmental policy, renewable energy, and innovation on ecological footprint," Technological Forecasting and Social Change, Elsevier, vol. 192(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jarijari, Theodorah & Deka, Abraham & Cavusoglu, Behiye, 2025. "The synergistic role of natural resources, green finance and green technological innovations in promoting environmental sustainability in Sub-Saharan Africa," Resources Policy, Elsevier, vol. 105(C).
    2. Tambari, Ishaya & Failler, Pierre & Jaffry, Shabbar & Yuan, He, 2025. "Could natural resources and financial development influence the markets for renewable energy in developing economies?," Resources Policy, Elsevier, vol. 108(C).
    3. Alrmah Saied R Amer & Ponle Henry Kareem, 2025. "Advancing Sustainable Development: Empirical Insights on Energy Poverty in ECOWAS Through Green Financing, Technological Innovation and Economic Empowerment," Sustainability, MDPI, vol. 17(3), pages 1-17, February.
    4. Abdulmula Mohamed Almahdi Arab & Ponle Henry Kareem & Serdal Işıktaş, 2025. "Driving Sustainable Energy Goals: Testing the Impact of Investment, Technological Innovations, and Oil Rent on Renewable Energy Development in Brazil, Russia, India, China, and South Africa Economies," Sustainability, MDPI, vol. 17(7), pages 1-14, April.
    5. Naimoglu, Mustafa & Pata, Ugur Korkut, 2025. "Evaluating energy efficiency strategies with natural resource rents and energy technologies in Canada," Resources Policy, Elsevier, vol. 109(C).
    6. Farouk M. Frnana & Ponle Henry Kareem, 2025. "Pathways to Achieving Low Energy-Poverty Problems in Central African Nations with Government Effectiveness, Technology, Natural Resources and Sustainable Economic Growth," Sustainability, MDPI, vol. 17(3), pages 1-15, January.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Ayman Shuayb Sulayman Shuayb & Sindiso Dube & Wagdi Khalifa & Abraham Deka & Ponle Henry Kareem & Behiye Cavusoglu, 2025. "The impact of natural resources rent, renewable energy, and governance on the environmental sustainability—Evidence from resource‐rich countries," Natural Resources Forum, Blackwell Publishing, vol. 49(2), pages 1842-1858, May.
    2. Jarijari, Theodorah & Deka, Abraham & Cavusoglu, Behiye, 2025. "The synergistic role of natural resources, green finance and green technological innovations in promoting environmental sustainability in Sub-Saharan Africa," Resources Policy, Elsevier, vol. 105(C).
    3. Deka, Abraham & Efe-Onakpojeruo, Chioma Christiana & Ozdeser, Huseyin, 2025. "Capitalizing on technological innovations and natural resources rent in alleviating ecological footprint in the Sub-Saharan African countries," Resources Policy, Elsevier, vol. 101(C).
    4. Salim Ali Salim Omar & Wagdi M. S. Khalifa & Ponle H. Kareem, 2025. "The Influence of Trade, Technology and Economic Growth on Environmental Sustainability in the Gulf Cooperation Countries—New Evidence with the MMQR Method," Sustainability, MDPI, vol. 17(2), pages 1-15, January.
    5. Musbau Omotola Kadir & Abraham Deka & Mehdi Seraj & Huseyin Ozdeser, 2025. "Capitalizing on natural resources rent and renewable energy in enhancing economic growth—New evidence with MMQR method," Natural Resources Forum, Blackwell Publishing, vol. 49(4), pages 3421-3441, November.
    6. Jamal Alnsour & Farah Mohammad AlNsour, 2025. "The Nexus Between Natural Resources, Renewable Energy and Economic Growth in the Gulf Cooperation Council Countries," Resources, MDPI, vol. 14(8), pages 1-20, July.
    7. Abdulmula Mohamed Almahdi Arab & Ponle Henry Kareem & Serdal Işıktaş, 2025. "Driving Sustainable Energy Goals: Testing the Impact of Investment, Technological Innovations, and Oil Rent on Renewable Energy Development in Brazil, Russia, India, China, and South Africa Economies," Sustainability, MDPI, vol. 17(7), pages 1-14, April.
    8. Tambari, Ishaya & Failler, Pierre & Jaffry, Shabbar & Yuan, He, 2025. "Could natural resources and financial development influence the markets for renewable energy in developing economies?," Resources Policy, Elsevier, vol. 108(C).
    9. Farouk M. Frnana & Ponle Henry Kareem, 2025. "Pathways to Achieving Low Energy-Poverty Problems in Central African Nations with Government Effectiveness, Technology, Natural Resources and Sustainable Economic Growth," Sustainability, MDPI, vol. 17(3), pages 1-15, January.
    10. Liu, Ying, 2025. "Whether fintech, natural resources, green finance and environmental tax affect CO2 emissions in China? A step towards green initiatives," Energy, Elsevier, vol. 320(C).
    11. Abd El Nasser, Noran & Ibrahiem, Dalia M. & Sameh, Rasha, 2025. "The nexus between the dependence on natural resources and environmental sustainability: Does institutional matter?," Resources Policy, Elsevier, vol. 101(C).
    12. Fu, Haoliang & Guo, Wenwei & Sun, Zheng & Xia, Ting, 2023. "Asymmetric impact of natural resources rent, monetary and fiscal policies on environmental sustainability in BRICS countries," Resources Policy, Elsevier, vol. 82(C).
    13. Zhang, Zhihe & Hou, Yufei & Zhang, Zesen & Li, Mulin, 2023. "Natural resources, carbon neutrality, and fiscal federalism: Implications for G7 countries amid rising Covid-19 concerns," Resources Policy, Elsevier, vol. 87(PA).
    14. Aladejare, Samson Adeniyi, 2022. "Natural resource rents, globalisation and environmental degradation: New insight from 5 richest African economies," Resources Policy, Elsevier, vol. 78(C).
    15. Khan, Yasir & Hassan, Taimoor & Guiqin, Huang & Nabi, Ghulam, 2023. "Analyzing the impact of natural resources and rule of law on sustainable environment: A proposed policy framework for BRICS economies," Resources Policy, Elsevier, vol. 86(PA).
    16. Schneider, Nicolas & Strielkowski, Wadim, 2023. "Modelling the unit root properties of electricity data—A general note on time-domain applications," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 618(C).
    17. Chen, Jiamin & Chen, Yuwei, 2024. "Does natural resources rent promote carbon neutrality: The role of digital finance," Resources Policy, Elsevier, vol. 92(C).
    18. Waaje, Abdul & Roshid, Md Mustaqim & Islam, Sohidul & Chandra Bhowmik, Reday & Rahaman, Muhammad Abdur & Hassan, Md Mahedi, 2025. "Tourism, trade, energy, and economic development: Drivers of ecological footprint in the World’s top tourist destinations," Innovation and Green Development, Elsevier, vol. 4(3).
    19. Jialin Li, 2026. "How natural resource consumption, trade, energy transition, and geopolitical risk drive sustainable development in G20 nations?," Natural Resources Forum, Blackwell Publishing, vol. 50(1), pages 659-684, February.
    20. Nwani, Chinazaekpere & Adams, Samuel, 2021. "Environmental cost of natural resource rents based on production and consumption inventories of carbon emissions: Assessing the role of institutional quality," Resources Policy, Elsevier, vol. 74(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:98:y:2024:i:c:s0301420724007311. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.