Asymmetric Effect of Natural Resource Exploitation on Climate Change in Resource-Rich African Countries

This study investigated the asymmetric impact of natural resource exploitation on climate change in resource-rich African countries, based on panel data from 1980 to 2022. The dynamic common correlated effect (DCCE) and dynamic seemingly unrelated regression (DSUR) econometric techniques were employed to evaluate the long-term effects of positive shocks and negative shocks to natural resource exploitation. The findings revealed a positive relationship between both positive and negative shocks to natural resource exploitation and temperature, with increases in natural resource exploitation exerting a more intensified impact on temperature than decreases. In contrast, both positive and negative changes in natural resource exploitation are negatively related to precipitation, with an increased exploitation intensity having a more pronounced effect on rainfall patterns. The study also highlights the critical role of control variables such as GDP per capita, urban population, and total energy consumption in altering temperature and precipitation patterns. The findings underscore the importance of adopting sustainable natural resource extraction practices, integrating green technologies, and promoting collaboration across natural resource exploitation and renewable energy value chains to mitigate the negative impacts of natural resource exploitation.