Financing renewable energy generation in SSA: Does financial integration matter?

Herve Kaffo Fotio, Tii Nchofoung and Simplice Asongu

Renewable Energy, 2022, vol. 201, issue P2, 47-59

Abstract: Despite growing attention on the role of renewable energy in promoting economic growth and environmental sustainability, its adoption rate remains uncomfortably low, especially in developing countries. This study attempts to explore the ways to extend the installed capacity of renewable energy in 16 sub-Saharan African (SSA) countries over the period 1980-2017. The results from panel cointegration econometric techniques suggest that policies to enhance financial integration should increase the installed capacity of renewable energy in SSA both in the long and short-run. This long-run effect holds, although disproportionately when the financial integration index is disaggregated into its de facto and de jure aspects. Moreover, the quantile regression analysis reveals that the effect of financial integration on renewable energy capacity is positive but heterogeneous across the conditional distribution of renewable energy capacity. However, the positive effect of financial integration is not enough to ensure the diversification of the energy mix. The results finally show that economic growth is positively linked to renewable energy generation capacity while financial development is negatively associated with renewable energy production.

Keywords: Financial integration; Renewable energy; Sub-Saharan Africa; Cointegration (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0960148122016895
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Financing renewable energy generation in SSA: Does financial integration matter? (2022)
Working Paper: Financing renewable energy generation in SSA: Does financial integration matter? (2022)
Working Paper: Financing renewable energy generation in SSA: Does financial integration matter? (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:renene:v:201:y:2022:i:p2:p:47-59

DOI: 10.1016/j.renene.2022.11.047

Access Statistics for this article

Renewable Energy is currently edited by Soteris A. Kalogirou and Paul Christodoulides

More articles in Renewable Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().