Impact of industrial development and machinery and transport equipment on natural resources in South Africa

Abstract

Recent years have seen increasing attention paid to the industrial processing of natural resources as a possible strategy for industrial development in developing countries that export primary products. The paper examines the effects of industrial development, machinery, and transport equipment on natural resources in South Africa from 1972 to 2020, considering the role of population and economic growth. We apply advanced economic modeling for long-run estimates. The relationship between industrial development and economic growth is significant at a 1% significance level. Population growth and machine and transport equipment are significant at 1% and 5%. Industrial development and economic growth are positively associated with natural resources, while population growth and machinery and transport equipment are negatively associated. The growth of industry led to the development of more industrial land. Industrialization became a part of farming. The South African government should step up existing policies to further decoupling of material resources and economic growth. Measures to consider include integrating life-cycle-oriented approaches, introducing resource fees, charging for environmental damage, or extending legal minimum warranty periods to support longer product lifespans. Identifying new business models focusing on resource efficiency of production processes could result in more value created by the private sector.