Non-renewable natural resource trade on environmental degradation and sustainability in Sub-saharan Africa

The environmental impact of mining is well-documented; however, the specific effects of nonrenewable natural resource trade on pollution emissions have received less attention, particularly in Africa. Sub-Saharan Africa heavily relies on exporting primary commodities vital to its economies. Nonetheless, this dependence challenges balancing economic growth with environmental sustainability, as resource extraction often leads to environmental degradation. As a result, little is known about how nations may protect the environment and experience faster economic growth through trade. Therefore, this study aims to investigate the impact of such trade on environmental degradation and sustainability, using carbon dioxide emissions and adjusted net savings as proxies, respectively. Utilizing balanced panel data from 17 resource-rich countries in Sub-Saharan Africa from 2010 to 2020 and employing the System Generalized Methods of Moments, the study finds that a percentage point increase in non-renewable natural resource trade significantly raises carbon dioxide emissions by 0.31 metric tons per capita at 1% level of significance. Additionally, a percentage point increase in trade is associated with 0.77 percentage points decline in environmental sustainability at 10% level of significance. The study recommends reinvesting resource export proceeds into environmental conservation to balance economic development with sustainability.