The Sub-Saharan Africa (SSA) region is facing environmental sustainability challenges due to its abundant reserves of strategic commodities like crude oil and gold. These commodities significantly contribute to economic growth through their extraction and export to the global commodity market, but this economic dividend comes at the cost of environmental degradation. The present study explores the SSA region from the dimension of environmental sustainability, as it has received very limited research attention. It empirically investigates the interrelationships between commodity prices, economic policy uncertainty, renewable energy consumption (green energy), and carbon emissions across 39 SSA countries from 1996 to 2022. The study uses the second-generation panel econometrics method, the Augmented Mean Group technique, for the primary estimation. It also uses the two-step system Generalized Method of Moments (GMM) and FMOLS for robustness. The present study validates the Environmental Kuznets Curve hypothesis and provides new insights into the environmental dynamics of the SSA region. The study findings show that strategic commodities drive the region's environmental crisis, while green energy consumption and economic policy stability promote sustainability. It suggests that SSA countries should focus on controlling illegal mining and exploration activities while accelerating investments in green energy to mitigate environmental deterioration. This research study makes policy recommendations to achieve sustainable development while balancing economic growth and environmental protection.
31 December 2021 in Journal of Sustainability Science and Management
Empirical evidence is lacking on the nexus between coffee commodity output, climate change, and commodity price volatility of Africa’s most populous country, Nigeria, and other developing countries. To fill this gap, this study analyzed the reaction of coffee output to climate change and commodity price volatility. We used secondary data from 1961 to 2015 from reliable sources for Nigeria. The study adopted generalized autoregressive conditional heteroscedasticity (GARCH), autoregressive conditional heteroscedasticity (ARCH), and fully modified ordinary least square (FMOLS) in analysis of coffee output reaction to climate change and commodity price volatility. The findings show that coffee output in Nigeria is influenced by climate change and the international commodity price of coffee. The study demonstrates the potential benefits of improving coffee output and export through climate mitigation and adaptation measures and revival of agricultural commodity marketing in Nigeria and other developing countries.
10 October 2020 in International Journal of Energy Economics and Policy