Natural resource extraction and environmental sustainability in Africa: The role of voice and accountability

Emmanuel Kwaku Manu, George S. Chen, Nam Hoang and Shawn Leu

Sustainable Development, 2024, vol. 32, issue 6, 6104-6119

Abstract: We examine the effect of natural resource extraction on environmental sustainability in Africa. Using comprehensive panel data from 30 countries for the 2004–2021 period, we find that natural resource extraction reduces environmental sustainability, particularly in resource‐poor countries. However, the nature of this nexus is time‐varying, with natural resource extraction exerting a positive and negative impact on environmental sustainability in the short and long run, respectively. We also note that strong economic institutions like voice and accountability can enhance environmental sustainability. In short, our results shed light on the complex dynamics of the extraction–sustainability nexus in an extremely young and rapidly developing part of the world. Moreover, our results demonstrate that robust economic institutions can be an effective environmental protection mechanism independent of initial natural resource endowment.

Date: 2024
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https://doi.org/10.1002/sd.3017

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Persistent link: https://EconPapers.repec.org/RePEc:wly:sustdv:v:32:y:2024:i:6:p:6104-6119

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