IDEAS home Printed from https://ideas.repec.org/a/wly/sustdv/v33y2025i2p2634-2658.html
   My bibliography  Save this article

Revisiting the sustainable industrialization paradigm in Africa: Exploring the influence of digitalization

Author

Listed:
  • Germain Stephane Ketchoua
  • Elvis K. Avenyo
  • Fiona Tregenna

Abstract

This research contributes to the ongoing discourse surrounding the sustainable industrialization of African nations, a pivotal aspect emphasized by the United Nations within the Sustainable Development Goals. Drawing inspiration from the burgeoning digitalization trends across Africa, this study examines the role of digitalization in mediating the environmental repercussions of industrialization within the 45 African countries spanning the years 2000–2022. The assessment of environmental sustainability is gauged through ecological footprint and biocapacity. Employing the Environmental Kuznets Curve, and the Stochastic Impacts by Regression on Population, Affluence, and Technology framework, empirical analyses leverage the Generalized Method of Moments and the mediation analysis using structural equation modeling to unveil insightful findings. The research findings highlight the detrimental impact of industrialization on ecological health, evidenced by its correlation with an increase in ecological footprint and a decrease in biocapacity. Conversely, digitalization emerges as a positive influence on environmental well‐being. These findings remain consistent across diverse categorizations of digitalization, and ecological balance. Further examination of their interplay reveals a discernible favorable impact on environmental sustainability, with mediation analysis suggesting that digitalization mitigates approximately 4% and 6% of the overall impact of industrialization on ecological footprint and biocapacity, respectively. Additionally, our analysis lends credence to the Environmental Kuznets Curve hypothesis. As a result, it is imperative for governments to incentivize industries to adopt eco‐friendly practices and technologies in order to mitigate their ecological footprint. At the same time, policies that promote digitalization should be encouraged to further enhance environmental quality.

Suggested Citation

  • Germain Stephane Ketchoua & Elvis K. Avenyo & Fiona Tregenna, 2025. "Revisiting the sustainable industrialization paradigm in Africa: Exploring the influence of digitalization," Sustainable Development, John Wiley & Sons, Ltd., vol. 33(2), pages 2634-2658, April.
    • Handle: RePEc:wly:sustdv:v:33:y:2025:i:2:p:2634-2658
    DOI: 10.1002/sd.3248
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/sd.3248
    Download Restriction: no
    File URL: https://libkey.io/10.1002/sd.3248?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
    ---><---

    References listed on IDEAS

    as
    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    2. Lars-Hendrik Roller & Leonard Waverman, 2001. "Telecommunications Infrastructure and Economic Development: A Simultaneous Approach," American Economic Review, American Economic Association, vol. 91(4), pages 909-923, September.
    3. Asongu, Simplice A. & Le Roux, Sara & Biekpe, Nicholas, 2017. "Environmental degradation, ICT and inclusive development in Sub-Saharan Africa," Energy Policy, Elsevier, vol. 111(C), pages 353-361.
    4. Tii N. Nchofoung & Ibrahim Ngouhouo, 2024. "Determinants of economic resilience response in sub-Saharan Africa to a common exogenous shock: roles of demographic differences, exchange rate regimes and institutional quality," Journal of Social and Economic Development, Springer;Institute for Social and Economic Change, vol. 26(1), pages 186-213, April.
    5. Muhamadu Awal Kindzeka Wirajing & Ali Haruna & Tii N. Nchofoung, 2024. "Financial inclusion and healthcare in Africa: Examining the moderating role of education," Review of Development Economics, Wiley Blackwell, vol. 28(1), pages 97-127, February.
    6. Avenyo, Elvis Korku & Tregenna, Fiona, 2022. "Greening manufacturing: Technology intensity and carbon dioxide emissions in developing countries," Applied Energy, Elsevier, vol. 324(C).
    7. Angeon, Valérie & Bates, Samuel, 2015. "Reviewing Composite Vulnerability and Resilience Indexes: A Sustainable Approach and Application," World Development, Elsevier, vol. 72(C), pages 140-162.
    8. 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.
    9. Fiona Tregenna, 2008. "The Contributions Of Manufacturing And Services To Employment Creation And Growth In South Africa," South African Journal of Economics, Economic Society of South Africa, vol. 76(s2), pages 175-204, August.
    10. Antonio Andreoni & Simon Roberts, 2022. "Governing digital platform power for industrial development: towards an entrepreneurial-regulatory state," Cambridge Journal of Economics, Cambridge Political Economy Society, vol. 46(6), pages 1431-1454.
    11. Xu, Qiong & Zhong, Meirui & Li, Xin, 2022. "How does digitalization affect energy? International evidence," Energy Economics, Elsevier, vol. 107(C).
    12. Recep Ulucak & Danish & Yacouba Kassouri, 2020. "An assessment of the environmental sustainability corridor: Investigating the non‐linear effects of environmental taxation on CO2 emissions," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 1010-1018, July.
    13. Nina Czernich & Oliver Falck & Tobias Kretschmer & Ludger Woessmann, 2011. "Broadband Infrastructure and Economic Growth," Economic Journal, Royal Economic Society, vol. 121(552), pages 505-532, May.
    14. Katsuhisa Uchiyama, 2016. "Environmental Kuznets Curve Hypothesis and Carbon Dioxide Emissions," SpringerBriefs in Economics, Springer, number 978-4-431-55921-4, September.
    15. Xiaolan Fu & Elvis Avenyo & Pervez Ghauri, 2021. "Digital platforms and development: a survey of the literature," Innovation and Development, Taylor & Francis Journals, vol. 11(2-3), pages 303-321, September.
    16. Mara Madaleno & Manuel Carlos Nogueira, 2023. "How Renewable Energy and CO 2 Emissions Contribute to Economic Growth, and Sustainability—An Extensive Analysis," Sustainability, MDPI, vol. 15(5), pages 1-15, February.
    17. Aqib Mujtaba & Pabitra Kumar Jena, 2024. "Nexus Between the Energy Market, Industrialization, and Economic Growth in the Asia-Pacific Region," Energy RESEARCH LETTERS, Asia-Pacific Applied Economics Association, vol. 4(3), pages 1-5.
    18. Urszula Mentel & Elżbieta Wolanin & Mansur Eshov & Raufhon Salahodjaev, 2022. "Industrialization and CO 2 Emissions in Sub-Saharan Africa: The Mitigating Role of Renewable Electricity," Energies, MDPI, vol. 15(3), pages 1-12, January.
    19. Ma, Ruiyang & Lin, Boqiang, 2023. "Digitalization and energy-saving and emission reduction in Chinese cities: Synergy between industrialization and digitalization," Applied Energy, Elsevier, vol. 345(C).
    20. Zhou, Xiaoyan & Zhang, Jie & Li, Junpeng, 2013. "Industrial structural transformation and carbon dioxide emissions in China," Energy Policy, Elsevier, vol. 57(C), pages 43-51.
    21. Njoh, Ambe J., 2021. "Renewable energy as a determinant of inter-country differentials in CO2 emissions in Africa," Renewable Energy, Elsevier, vol. 172(C), pages 1225-1232.
    Full references (including those not matched with items on IDEAS)

    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. Abdulqadir, Idris A. & Asongu, Simplice A., 2022. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa," Economic Analysis and Policy, Elsevier, vol. 73(C), pages 44-61.
    2. Agénor, Pierre-Richard & Neanidis, Kyriakos C., 2015. "Innovation, public capital, and growth," Journal of Macroeconomics, Elsevier, vol. 44(C), pages 252-275.
    3. Abdulqadir, Idris & Asongu, Simplice, 2021. "The asymmetric effect of internet access on economic growth in sub-Saharan Africa: Insight from a dynamic panel threshold regression," MPRA Paper 109904, University Library of Munich, Germany.
    4. Yu Hao & Yunxia Guo & Haitao Wu, 2022. "The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?," Business Strategy and the Environment, Wiley Blackwell, vol. 31(1), pages 403-424, January.
    5. Wu, Haitao & Wang, Bingjie & Lu, Mingyue & Irfan, Muhammad & Miao, Xin & Luo, Shiyue & Hao, Yu, 2023. "The strategy to achieve zero‑carbon in agricultural sector: Does digitalization matter under the background of COP26 targets?," Energy Economics, Elsevier, vol. 126(C).
    6. Meniago, Christelle & Asongu, Simplice A., 2018. "Revisiting the finance-inequality nexus in a panel of African countries," Research in International Business and Finance, Elsevier, vol. 46(C), pages 399-419.
    7. Lulu Wang & Leyi Chen, 2024. "Resource dependence and air pollution in China: Do the digital economy, income inequality, and industrial upgrading matter?," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(1), pages 2069-2109, January.
    8. Wu, Haitao & Xue, Yan & Hao, Yu & Ren, Siyu, 2021. "How does internet development affect energy-saving and emission reduction? Evidence from China," Energy Economics, Elsevier, vol. 103(C).
    9. Ren, Siyu & Hao, Yu & Xu, Lu & Wu, Haitao & Ba, Ning, 2021. "Digitalization and energy: How does internet development affect China's energy consumption?," Energy Economics, Elsevier, vol. 98(C).
    10. Emrah Kocak & Hayriye Hilal Baglitas, 2022. "The path to sustainable municipal solid waste management: Do human development, energy efficiency, and income inequality matter?," Sustainable Development, John Wiley & Sons, Ltd., vol. 30(6), pages 1947-1962, December.
    11. Koski, Heli & Kretschmer, Tobias, 2010. "New product development and firm value in mobile handset production," Information Economics and Policy, Elsevier, vol. 22(1), pages 42-50, March.
    12. Vahagn Jerbashian & Anna Kochanova, 2016. "The impact of doing business regulations on investments in ICT," Empirical Economics, Springer, vol. 50(3), pages 991-1008, May.
    13. Carmen Díaz-Roldán & María del Carmen Ramos-Herrera, 2021. "Innovations and ICT: Do They Favour Economic Growth and Environmental Quality?," Energies, MDPI, vol. 14(5), pages 1-17, March.
    14. Emanuele Giovannetti & Claudio Piga, 2023. "The multifaceted nature of cooperation for innovation, ICT and innovative outcomes: evidence from UK Microdata," Eurasian Business Review, Springer;Eurasia Business and Economics Society, vol. 13(3), pages 639-666, September.
    15. Zhang, Pingdan & Yuan, Haoming & Bai, Fuli & Tian, Xin & Shi, Feng, 2018. "How do carbon dioxide emissions respond to industrial structural transitions? Empirical results from the northeastern provinces of China," Structural Change and Economic Dynamics, Elsevier, vol. 47(C), pages 145-154.
    16. Briglauer, Wolfgang & Cambini, Carlo & Melani, Sauro, 2016. "How to Fill the Digital Gap? The (Limited) Role of Regulation," VfS Annual Conference 2016 (Augsburg): Demographic Change 145480, Verein für Socialpolitik / German Economic Association.
    17. Bacha, Radia & Gasmi, Farid, 2022. "The broadband diffusion process and its determinants in Algeria: A simultaneous estimation," TSE Working Papers 22-1309, Toulouse School of Economics (TSE).
    18. Jerbashian Vahagn & Kochanova Anna, 2018. "Tele-Communications 2.0: The Age of the Internet," The B.E. Journal of Economic Analysis & Policy, De Gruyter, vol. 18(3), pages 1-8, July.
    19. Hermann Ndoya & Simplice A. Asongu, 2022. "Digital divide, globalization and income inequality in sub-Saharan African countries: analysing cross-country heterogeneity," Social Responsibility Journal, Emerald Group Publishing Limited, vol. 20(1), pages 1-19, October.
    20. Bourreau, Marc & Cambini, Carlo & Doğan, Pınar, 2012. "Access pricing, competition, and incentives to migrate from “old” to “new” technology," International Journal of Industrial Organization, Elsevier, vol. 30(6), pages 713-723.

    More about this item

    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:wly:sustdv:v:33:y:2025:i:2:p:2634-2658. 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: Wiley Content Delivery (email available below). General contact details of provider: http://onlinelibrary.wiley.com/journal/10.1002/(ISSN)1099-1719 .

    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.