Understanding the nexus: economic complexity and environmental degradation in Sub-Saharan Africa

In Sub-Saharan Africa (SSA), where economic development is gaining momentum, the intricate connection between economic complexity and ecological footprint emerges as a pivotal challenge. The region's burgeoning economic activities raise concerns about escalating environmental degradation, making the delicate balance between economic progress and ecological sustainability in SSA increasingly crucial. In this light, the present study aims to examine the effect of economic complexity on environmental degradation in the SSA context, shedding light on the nuanced dynamics and contributing insights for sustainable development in the region. Using a sample of 22 SSA Countries spanning the period from 1998 to 2017, and employing both the Discroll and Kraay Fixed Effect and the System Generalized Method of Moments estimators, the empirical results reveal that economic complexity exacerbates ecological footprint intensity. Introduction of control variables demonstrated that GDP per capita, population density, trade, and FDI all exacerbate environmental degradation while access to electricity mitigates the ecological footprint intensity. The findings withstand scrutiny when an alternative measure of ecological footprint and economic complexity is applied. The study concludes by proposing policy implications such as sustainably enhancing energy infrastructure, focusing on eco-friendly urban planning policies, and prioritizing resource-efficient industrial development so as to help curbing the escalating ecological footprint and foster sustainable development in the region.