Impact of Technological Innovation, Environmental Policy, and Policy Inclusion on Renewable Energy Adoption in Sub-Sahara Africa

Abstract

This study investigates the factors influencing renewable energy consumption and renewable electricity in Sub-Sahara Africa (SSA) using the Lewbel 2SLS approach, panel quantile regression and Driscoll and Kraay estimator. It focuses on a panel dataset covering 41 countries from 1998 to 2020. In general, the study finds that technological innovation exhibits a negative link with renewable energy consumption, with an intensified negative response when patent applications are increased (negative synergy). Conversely, technological innovations are positively associated with renewable electricity, and this positive response is augmented with increased patent applications (positive synergy). The study further identifies that environmental policy positively synergizes with renewable electricity, while enhancing voice and accountability negatively influences renewable energy consumption and exhibits negative synergy on renewable electricity. Considering net effects and thresholds, boosting GDP initially has a positive effect on renewable energy consumption, but beyond a certain threshold, this effect turns negative, necessitating complementary policies for sustained positivity. Additionally, industrialization is associated with a net negative effect and a negative synergy of renewable energy consumption. Finally, the findings are also contingent on initial levels of sustainable energy as well as on regional economic blocs for policy implications.