Heterogeneous effects of industrialization on the environment: Evidence from panel quantile regression

With growing industrialization comes environmental concerns. Thus, we are motivated to offer empirical insights into how industrialization affects the environment. Using ecological footprint to proxy environmental degradation, we examine the heterogeneous effects of industrialization on the environment. We utilize data from 37 African countries from 2000 to 2016 and use the quantile regression model for panel data. The results show a noteworthy heterogeneous environmental effect of industrialization. Industrialization is found to increase environmental degradation in the 10–30th quantiles, while in the 40–90th quantiles, industrialization reduces environmental degradation. To curb environmental degradation, manufacturing firms should adopt and utilize more greener technologies in their production processes. Besides, environmental regulations must be enforced to ensure that manufacturing activities contribute to sustainable environment and development.