Investigating the nexus between the blue and green economy towards’ economic growth of South Africa

Abstract

Economic growth has experienced massive disruptions in various economic sectors concerning the demand and supply of goods worldwide. This has led to significant attention from multiple scholars to discover the blue and green economy effects on economic growth. Numerous economies adopted either the blue or green economy due to high financing requirements, and insufficient revenues generated within the country context. This study applied a qualitative approach to investigate the nexus between the blue and green economy towards the economic growth of South Africa through secondary time series data from 1990 to 2020. The ARDL model was used to show a long-term equilibrium relationship between the blue and green economy and the economic growth of South Africa. The econometric techniques were executed to reveal the economic growth status of South Africa, concerning the blue and green economy. This research is innovative as it has integrated the blue and green economic idea to reveal that total factor productivity, and total greenhouse emission equivalent to C02 have a positive influence on the economic growth of South Africa. The positive GHGE_C02 is ushered by insignificance in both periods revealing that South Africa is behind in promoting some SDGs to sustain economic growth. This study has also found that adopting the blue and green economy aspect is an unavoidable key to achieving numerous Sustainable Development Goals which are fundamental for reaching economic growth. This study revealed that proper administration and utilization of water and environmental resources may assist in instigating economic growth. This study intends to encourage South African policymakers to adopt both the blue and green economy and to add a comprehensive system that will value adapting and modifying relevant, and effective strategies for sustainable economic growth, by considering the adoption of normal resource use through the blue and green economy while addressing economic growth challenges.