Can Financing Technological Development Programs Mitigate Mineral Resource Consumption-Related Environmental Problems Faced by Sub-Saharan African Nations?

Abstract

Much like the Global South, countries located in the Sub-Saharan African region have plentiful deposits of critical minerals. However, mineral dependency in these countries is assumed to be inflicting detrimental impacts on their environmental conditions. Hence, this study tests this assumption by utilizing data from 30 developing nations from this mineral-rich region. Specifically, the environmental influences associated with mineral consumption, technological development financing, financial globalization, and urbanization are explored. Based on the analytical outcomes, derived using robust panel data analytical methods, it is certified that mineral resource dependence is responsible for triggering carbon emission-led environmental problems. Besides, disbursement of technological development funds is found to directly improve environmental conditions while indirectly limiting the environmental distresses exerted by the mineral industries located across Sub-Saharan Africa. Moreover, validating the pollution haven hypothesis, the findings endorse the environmental condition-degrading impact of foreign direct investment flowing into the concerned nations. Lastly, urbanization is found to be responsible for raising environmental concerns by boosting the carbon emission figures further. Thus, it is recommended that the governments of the selected Sub-Saharan African nations make their mineral industries more ecologically friendly, provide ample financial support for technological development programs, attract clean foreign direct investment, and implement environmentally-sustainable urbanization policies.