Natural resource abundance, environmental sustainability, and policies and institutions for environmental sustainability in sub-Saharan Africa

Abstract

This paper examines the effect of natural resource abundance on environmental sustainability while considering the mediation role of policies and institutions for environmental sustainability (PIES). We used 29 sub-Saharan African countries, further disaggregated into 11 resource-rich and 18 resource-poor countries over the period 2005–2017. We find that natural resource abundance improves environmental sustainability by utilizing the System-Generalized Method of Moments (system-GMM) and Panel-Corrected Standard Error (PCSE). We further find that resource-rich countries deteriorate environmental sustainability more than resource-poor economies in SSA. Lastly, we find PIES improve environmental quality or sustainability. We conclude that SSA's natural resource abundance enhances environmental sustainability if PIES are strengthened. We call for stringent and appropriate environmental policies and measures toward environmental sustainability.