Economic performance, environmental concerns, and renewable energy consumption: drivers of renewable energy development in Sub-Sahara Africa

Abstract

This paper analyzes the drivers of renewable energy development and consumption in Sub-Sahara African countries for the period, 1980–2011. The fully modified ordinary least squares, dynamic ordinary least squares, and fixed-effects estimation techniques are used to evaluate the statistical significance of the determinants of renewable energy consumption. Results indicate that income has the desired positive, albeit statistically insignificant contribution to renewable energy consumption growth. This indicates that recent economic strength in the region has not been accompanied by increased development and consumption of renewable energy, in contrast to empirical evidence in other developing economies. A review of the possible reasons for this incongruence is presented. Also, increased consumption of renewable energy is associated with heightened concerns for climate change caused by pollutants such as carbon dioxide. Population and industrial expansion are statistically significant determinants of renewable consumption, and oil prices correlate negatively with renewable energy consumption.