The Role of Industrialization and Renewable Energy on Environmental Quality in Oil Exporting Sub-Saharan African Countries

T. Adenike Egunjobi and Darlington Uzoma Akam

African Journal of Economic Review, 2024, vol. 13, issue 2

Abstract: As countries grow, the call for achieving industrial sustainability becomes crucial for their development. As a result, this paper investigates the role of industrialization and renewable energy on environmental quality (proxied as load capacity factor) across seven (7) oil-exporting SSA countries between 1990 and 2023. Using cross-sectional dependence induced techniques such as panel-corrected standard error (PCSE) and feasible generalized least squares (FGLS), this study finds that while a unit increase in industrialization exacerbates environmental quality by 0.47 units, a unit increase in renewable energy plays an important role in improving environmental quality by 0.06 units. However, the amount of renewable energy consumption does not have the full potential to reduce the adverse environmental effects of industrialization. Further, the result indicates that while population reduces ecological quality, economic growth improves it. The study recommends that policymakers in oil-exporting countries should tailor their policies towards environmental regulation and encourage the use of eco-friendly technologies in the manufacturing sectors, through tax incentive policies, green industrial zones, and benchmarking ecological performance across these countries.

Keywords: Environmental; Economics; and; Policy (search for similar items in EconPapers)
Date: 2024
References: Add references at CitEc
Citations:

Downloads: (external link)
https://ageconsearch.umn.edu/record/362946/files/a ... 10_683983a87e6af.pdf (application/pdf)

Related works:
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:ags:afjecr:362946

DOI: 10.22004/ag.econ.362946

Access Statistics for this article

More articles in African Journal of Economic Review from African Journal of Economic Review
Bibliographic data for series maintained by AgEcon Search ().