Clean energy adoption, industrialization and sustainable development: A system GMM approach

Abstract

This study investigates the relationship between clean energy adoption, industrialization and sustainable development in 37 Sub-Saharan African (SSA) countries over the period from 2000 to 2020, employing a System Generalized Method of Moments (GMM) approach. The analysis reveals that renewable energy (RE) has a positive and significant effect on the Sustainable Development, indicating that a unit increase in renewable energy utilization results in a 0.052 % enhancement of the actualization of sustainable development. Additionally, access to clean fuels and technologies for cooking demonstrates both a positive and significant impact on sustainable development, highlighting the importance of clean energy access in improving living standards and health outcomes. Furthermore, manufacturing value added is found to contribute significantly and positively to sustainable development, suggesting that industrialization can play a crucial role in advancing sustainable practices when aligned with clean energy initiatives. These findings underscore the necessity of integrating renewable energy and industrialization strategies to foster sustainable development in the SSA region, providing valuable insights for policymakers aiming to achieve sustainable growth while addressing energy challenges.