Climate change and environmental degradation: Evidence from SADC countries

Abstract

The study investigated the effect of climate change on environmental degradation in the Southern African Development Community (SADC) countries. Using data sourced from the World Bank indicator from 1990 to 2024, the study constructed indices for climate change and environmental degradation using principal component analysis. The study employed Robust Standard Error Estimation in the Pooled Ordinary Least Squares and Fixed-Effects Panel models to examine the study objectives. However, for the sensitivity analysis, the study used a Driscoll-Kraay Standard Error (DKSE) and Panel-Corrected Standard Errors (PCSE) estimators to control for cross-sectional dependence and model heterogeneity. The results revealed that climate change significantly negatively affects the environment and trade openness. A variety of climate hazards critically expose 30% of the SADC region to environmental degradation driven by greenhouse gas emissions, and this may significantly reduce crop productivity without adaptation, especially for cereals. In conclusion, the SADC countries desperately need integrated policies and strategies that promote adaptation and mitigation of climate change, renewable energy, and reduced environmental pollution.