Decoupling economic growth from material footprint and its implications for sustainable development progress in Namibia

Abstract

A gradual increase in material consumption undermines environmental sustainability, particularly in resource-dependent nations. This study examines whether Namibia’s economic development is decoupled from its material footprint. This study relies on annual data from 1990 to 2021 for several reasons. This study utilized the Vector Error Correction Model (VECM) to examine the long- and short-term correlations between the material footprint, real gross domestic product (GDP), material exports, and energy consumption. The results indicate no long-term relationship between the material footprint and economic growth in Namibia. Material exports reduced the material footprint by 35.75%, but energy use increased it by 48.59% in the long run. Material exports were adjusted to rectify the system imbalance at a rate of 2.43% per period. In the short term, material exports increase the material footprint by 0.61%, whereas material imports reduce it by 0.21%. The findings show that Namibia’s decoupling dilemma is more structural than cyclical. Therefore, we recommend prioritizing the development of policies to address structural decoupling by transitioning to a resource-efficient, sustainable growth model.