Modeling the Determinants of the Ecological Footprint in South Africa: Human Capital Development, Manufacturing Activities, and International Trade Impacts in Achieving SDG 13

ABSTRACT

This study investigates the indicators of urban ecological quality in South Africa and their interconnectedness with Sustainable Development Goal 13 (SDG 13)—climate action. As a rapidly urbanizing nation with a dynamic economy, South Africa faces complex challenges in maintaining a high level of urban environmental quality while pursuing economic growth. This research uses a multifaceted approach to analyze the roles of economic growth, energy consumption, manufacturing activities, renewable energy consumption, financial development, human capital development, and international trade in influencing the nation's environmental sustainability. The study employs the fully modified least squares (FMOLS) and canonical cointegrating regression (CCR) estimation approaches to assess the impact of these different indicators on urban environmental quality in South Africa. The results showed that energy consumption development initiatives (e.g., renewable energy enhancement) are pivotal in promoting sustainable areas and mitigating climate change effects. Furthermore, the study explored the nexus between increased manufacturing activities and international trade on urban environmental quality, offering insights into the trade‐offs and synergies among these factors. The findings provide valuable guidance for policymakers and stakeholders in designing strategies that harmonize economic growth, urban growth, and environmental sustainability, aligning with the global agenda of addressing climate change and promoting sustainable urban development.