Determinants of foreign direct investment in renewable electricity industry in Africa

IF 2 Q4 ENERGY & FUELS

International Journal of Sustainable Energy Pub Date : 2022-09-14 DOI:10.1080/14786451.2021.2016763

A. Rashed, Chen-Chen Yong, Siew-Voon Soon

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引用次数: 1

Abstract

ABSTRACT Using a novel dataset of foreign direct investment (FDI) corporations in the renewable electricity industry (REI), coupled with a large range of employed variables, this paper empirically examines FDI determinants in the REI in Africa between 2003 and 2019. The electricity insecurity issues worsen daily, aggravating all facets of African life. A range of promising and informative results were found using the FDI panel gravity fixed effects Poisson pseudo-maximum likelihood model. Interestingly, we reveal the uselessness of fossil fuel subsidy changes in stimulating green FDI in Africa. However, a 1% growth in Africa’s gross domestic product expands FDI by almost 1.5%. Similarly, one additional point in the corruption index reduces FDI by about 1.2%. Furthermore, increasing the number of educated African children and raising renewable energy awareness contributes constructively to the REI and sustainable energy development. To mitigate the energy issues, policymakers should elevate clean power consciousness among Africans and enhance sustainable energy support and policies.

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非洲可再生电力工业外国直接投资的决定因素

本文利用外商直接投资(FDI)公司在可再生能源电力行业(REI)的新数据集，结合大量使用的变量，实证研究了2003年至2019年非洲可再生能源电力行业的FDI决定因素。电力不安全问题日益恶化，使非洲人生活的各个方面恶化。使用FDI面板重力固定效应泊松伪极大似然模型发现了一系列有希望和信息丰富的结果。有趣的是，我们揭示了化石燃料补贴变化在刺激非洲绿色FDI方面的无用性。然而，非洲国内生产总值每增长1%，外国直接投资就会增长近1.5%。类似地，腐败指数的一个额外点会使外国直接投资减少约1.2%。此外，增加受过教育的非洲儿童的人数和提高对可再生能源的认识，对环境影响指数和可持续能源发展作出了建设性的贡献。为了缓解能源问题，决策者应该提高非洲人的清洁能源意识，加强可持续能源的支持和政策。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

International Journal of Sustainable Energy ENERGY & FUELS-

CiteScore

5.70

自引率

3.20%

发文量

期刊介绍： Engineering and sustainable development are intrinsically linked. All capital plant and every consumable product depends on an engineering input through design, manufacture and operation, if not for the product itself then for the equipment required to process and transport the raw materials and the final product. Many aspects of sustainable development depend directly on appropriate and timely actions by engineers. Engineering is an extended process of analysis, synthesis, evaluation and execution and, therefore, it is argued that engineers must be involved from the outset of any proposal to develop sustainable solutions. Engineering embraces many disciplines and truly sustainable solutions are usually inter-disciplinary in nature.