Renewable Energy, Trade Performance and the Conditional Role of Finance and Institutional Capacity of Sub-Sahara African Countries

Energy Policy, 132(September), pp. 490-498(2019)

A G D I Working Paper, WP/19/032

28 Pages Posted: 19 Jun 2019

See all articles by Opeyemi Akinyemi

Opeyemi Akinyemi

Covenant University

Uchenna Efobi

Covenant University

Simplice Asongu

African Governance and Development Institute

Evans Stephen Osabuohien

Covenant University; Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE)

Date Written: June 6, 2019

Abstract

The paper investigates the dynamic relationship between renewable energy usage and trade performance in sub-Saharan Africa (SSA), while considering the conditioning role of corruption control, regulatory quality, and the private sector access to finance. Focusing on 42 SSA countries for the period 2004-2016, and engaging the System generalized method of moments (GMM) technique for its estimation, this study found a negative relationship between renewable energy usage and the indicators of trade performance. However, with corruption control, improved regulatory framework, and better finance for the private sector, there are potentials for a positive net impact of renewable energy usage on manufacturing export. For renewable energy and total trade nexus, we find that improved regulatory framework and better finance for the private sector are important conditioning structures. These findings are significant because they highlight the different important structures of SSA countries that improve the effect of renewable energy use on trade outcomes. For instance, the consideration of the financial, institutional and regulatory frameworks in SSA countries in conditioning the renewable energy-trade nexus stipulates a clear policy pathway for countries in this region as the debate for transition to the use of renewable energy progresses.

Keywords: Environment; Green growth; Trade performance; Pollution; Renewable energy; sub-Saharan Africa

JEL Classification: C5; F1; Q4; Q5

Suggested Citation

Akinyemi, Opeyemi and Efobi, Uchenna and Asongu, Simplice and Osabuohien, Evans Stephen, Renewable Energy, Trade Performance and the Conditional Role of Finance and Institutional Capacity of Sub-Sahara African Countries (June 6, 2019). Energy Policy, 132(September), pp. 490-498(2019) , A G D I Working Paper, WP/19/032, Available at SSRN: https://ssrn.com/abstract=3400247 or http://dx.doi.org/10.2139/ssrn.3400247

Opeyemi Akinyemi

Covenant University ( email )

Canaanland
Km 10 Idiroko road
Ota, 24001
Nigeria

Uchenna Efobi

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria
+48036273494 (Phone)

Simplice Asongu (Contact Author)

African Governance and Development Institute ( email )

P.O. Box 8413
Yaoundé, 8413
Cameroon

Evans Stephen Osabuohien

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria
+2348028858727 (Phone)

HOME PAGE: http://www.covenantuniversity.edu.ng

Deutsches Institut für Entwicklungspolitik (DIE) - German Development Institute (DIE) ( email )

Tulpenfeld 4
Bonn, 53113
Germany
+4922894927290 (Phone)

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
7
Abstract Views
148
PlumX Metrics