Economic advancement and environmental sustainability in the SADC region

This study investigates the long-run relationship between economic growth and ecological sustainability among member countries of the Southern African Development Community (SADC) between 1997 and 2021. The study employs heterogeneous dynamic panel estimation techniques, the Mean Group (MG) and Pooled Mean Group (PMG) estimators developed by M. Hashem Pesaran and Smith (1995) and Pesaran et al. (1999), while the Dynamic Fixed Effects (DFE) estimator is applied as a robustness check.To depict their appropriateness in capturing both short-run heterogeneity and long-run equilibrium correlations among countries. The results indicate statistically significant long-term connections between economic growth and various environmental metrics, such as per capita carbon dioxide emissions, emissions from electric and heat generation, industrial and construction emissions, total carbon emissions, and unemployment. The findings show a continuous long-term relationship between environmental and economic performance in the SADC subregion. Empirical analysis backs the Environmental Kuznets Curve (EKC) theory, suggesting that environmental destruction initially increases in the early phases of economic development but decreases after income reaches a certain higher level. Moreover, the findings support the ecological modernization theory, emphasising the capacity of cleaner technologies, especially renewable energy, to foster economic development while mitigating ecological damage. Nonetheless, the results also suggest that economic development in the SADC region throughout the study period has primarily taken place to the detriment of environmental quality. These findings highlight the critical requirement for policies focused on decreasing carbon emissions, especially from the industrial, construction, and energy industries. Encouraging the shift to renewable energy sources and implementing sustainable development strategies are crucial for reducing environmental degradation in the subregion. These actions will promote sustained economic development while enhancing the region’s ability to effectively address climate change.