ADSU International Journal of Applied Economics, Finance and Management

An Assessment Of The Causal Impact Of Environmental Sustainability Determinants On The Ecological Footprint And Biocapacity In Selected Sub-Saharan African Countries

Abstract

This study explores the causal relationships between economic growth, urbanization, resource utilization, energy consumption, and environmental sustainability indicators ecological footprint (EF) and biocapacity (BC) in 10 selected Sub-Saharan African countries with high ecological deficits from 1970 to 2023, using the Dumitrescu and Hurlin (2012) panel causality test. Cross sectional dependency tests (Breusch-Pagan LM, Pesaran scaled LM, and Pesaran CD) confirm significant interdependence among the variables, while the Pesaran and Yamagata (2008) slope homogeneity test reveals heterogeneous dynamics across countries. Stationarity analysis using second generation panel unit root tests (CADF and CIPS) shows mixed integration orders. The results reveal both unidirectional and bidirectional causal linkages among EF, BC, and key economic and environmental variables. Specifically, GDP growth and urbanization contribute significantly to environmental degradation, while renewable energy consumption helps mitigate ecological harm. Bidirectional causality between natural resource depletion, EF, and BC further underscores the intricate connection between economic activities and ecological sustainability. These findings support the Environmental Kuznets Curve (EKC) hypothesis. The study recommends increasing renewable energy investment, adopting green urban planning strategies, enforcing strict environmental regulations, and fostering regional collaboration. These interventions are critical for achieving balanced economic development and long-term ecological sustainability in Sub-Saharan Africa.