Effect of renewable energy consumption on environmental quality in sub-Saharan African countries: evidence from defactored instrumental variables method

Abstract

Purpose

Sub-Saharan Africa is a region that is highly vulnerable to the effects of climate change. Renewable energy consumption could play a major role in mitigating the effects of climate change by improving environmental quality in the region. The purpose of this paper is to examine the effect of renewable energy consumption on environmental quality in sub-Saharan African countries.

Design/methodology/approach

The empirical investigation is based on the estimation of an augmented Green Solow model through the defactored instrumental variables approach on a sample of 34 countries over the period 1996 to 2018.

Findings

The results of two-stage defactored instrumental variables estimator show that renewable energy consumption improves environmental quality. Indeed, renewable energies have a significant negative influence on CO₂ emissions. This result is robust when using the ecological footprint as an indicator of environmental quality.

Practical implications

In terms of implications, governments in Sub-Saharan Africa need to pursue policies to encourage investment in the renewable energy sector. This will promote renewable energy consumption, change the structure of the energy mix in favour of renewable energy, improve environmental quality and effectively combat climate change.

Originality/value

The originality of this research in relation to the existing literature lies at several levels. Firstly, the analysis is carried out using a unified framework combining the environmental Kuznets curve and the environmental convergence hypotheses. Secondly, this research uses a very recent econometric method. Finally, environmental quality is measured using two indicators.

Citation

Diallo, S. (2024), "Effect of renewable energy consumption on environmental quality in sub-Saharan African countries: evidence from defactored instrumental variables method", Management of Environmental Quality, Vol. 35 No. 4, pp. 839-857. https://doi.org/10.1108/MEQ-09-2023-0326