How do urban population growth, hydropower consumption and natural resources rent shape environmental quality in Sudan?

Abstract

Despite the overwhelming research and useful outcomes on the relationship between hydropower consumption, urban population growth, and environmental quality, the empirical studies have mostly relied on partial indicators of environmental quality and employed conventional econometric models in which structural shocks are not controlled. Therefore, this study aims to offering a new perspective for the dynamic connection between hydropower consumption, urban population growth, natural resources rent, and ecological footprint within the context of Sudan during the period spanning 1990Q12018Q1. The study applied SVAR model to monitor the structural shocks, by decomposing shocks through relevant matrices and composite shocks through recursive impulse responses via a triangular matrix. In addition, the study employed the wavelet coherence technique to explore the lead-lag relations among the purposed variables. The findings of SVAR model uncover that hydropower consumption and economic growth significantly reduce the pollution in the long run, while urban population growth can do so in the short run. Moreover, natural resources rent, and industrial production are found to have detrimental effects on environment quality. The wavelet coherence analysis discloses that ecological footprint is lagging in hydropower consumption and natural resources rent. Meanwhile, ecological footprint leads the rest of the variables. The findings clearly reveal that hydropower plays an essential role in the fight against the environmental pollution in Sudan. Accordingly, the study suggests that throughout the energy sector reforms, more emphasis should be placed on the expansion of hydropower plants accompanied by strong environmental measures. Furthermore, the study recommends implementing efficient and sustainable urban policies by coordinating actions across state and regional urban institutions.