The role of natural resources abundance and dependence in achieving environmental sustainability: Evidence from resource‐based economies

Abstract

Proper use and efficient management of natural resources are critical to shaping a sustainable future in many resource‐rich countries in Africa. It is also well‐known that globalization creates a great awareness for sustainable resource extraction and provides cleaner production technology transfers to underdeveloped countries and enables them to establish a sustainable development pattern. However, evidence on the role of globalization in reducing the environmental impacts of natural resources in resource‐based economies is relatively scant. This study investigates sustainable future strategies by examining the role of natural resources, globalization, human capital, and urbanization in shaping the ecological footprint that is a broader indicator of environmental sustainability. To this end, Sub‐Saharan African countries—endowed with a rich natural resource base ranging from arable land, forest, freshwater, marine resources, oil, natural gas, minerals, and wildlife—are analyzed through advanced estimation techniques. Empirical results show that both resource dependence and abundance complicate to design a sustainable future by increasing the pressure on the environment. Similarly, urbanization deteriorates ecological conditions in Sub‐Saharan African countries. However, globalization and human capital seem the main sources of a cleaner and sustainable environment. The findings of the study shed new light on the main role of globalization in providing cleaner practices to reverse the negative influence of natural resource dependence and/or abundance on environmental quality.