Natural Resources, Renewable Energy, and Governance: A path towards sustainable development

Tii Nchofoung and Nathanael Ojong ()
Additional contact information
Nathanael Ojong: York University, Toronto, Canada

No 22/094, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: Based on data for 48 African countries for the period 2000–2020, we analyse the effects of natural resources on renewable energy development and the mediating effects of governance on that relationship. For this purpose, the Ordinary Least Squares method was used to develop a baseline regression model, and the Generalized Method of Moments (GMM) approach was used for the dynamic model regression. Quantile regression was used for robustness checking across the various distributions of renewable energy. First, we find that natural resources enhance renewable energy development in Africa and that the results are robust across alternative specifications of natural resources and governance, except for forest resources, which have a negative effect on renewable energy development. When robustness is checked through a quantile regression analysis, the results show that the positive effect depends on the conditional distribution of natural resources and the type of natural resource under consideration. The negative effect of total natural resources becomes weaker as we move towards higher quantiles. Second, governance interacts with natural resource rents to generate positive effects across different governance specifications and natural resources, except for coal rent. We thereby derive some relevant implications for renewable energy financing in African countries.

Keywords: Sustainable development; renewable energy; natural resources; governance; Africa; SDG7 (search for similar items in EconPapers)
JEL-codes: C23 Q33 Q48 (search for similar items in EconPapers)
Pages: 44
Date: 2022-01
New Economics Papers: this item is included in nep-afr, nep-ene and nep-env
References: View references in EconPapers View complete reference list from CitEc
Citations:

Forthcoming: Sustainable Development

Downloads: (external link)
http://publications.excas.org/RePEc/exs/exs-wpaper ... y-and-Governance.pdf Revised version, 2022 (application/pdf)

Related works:
Journal Article: Natural resources, renewable energy, and governance: A path towards sustainable development (2023)
Working Paper: Natural Resources, Renewable Energy, and Governance: A path towards sustainable development (2022)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:exs:wpaper:22/094

Access Statistics for this paper

More papers in Working Papers from European Xtramile Centre of African Studies (EXCAS)
Bibliographic data for series maintained by Anutechia Asongu Simplice ().