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

Opeyemi Akinyemi (opeyemi.akinyemi@covenantuniversity.edu.ng), Uchenna Efobi, Simplice Asongu and Evans Osabuohien (pecos4eva@gmail.com)
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Opeyemi Akinyemi: Covenant University, Ota, Nigeria

No 19/032, Working Papers from European Xtramile Centre of African Studies (EXCAS)

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 (search for similar items in EconPapers)
JEL-codes: C5 F1 Q4 Q5 (search for similar items in EconPapers)
Pages: 28
Date: 2019-01
New Economics Papers: this item is included in nep-ene, nep-env and nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (51)

Forthcoming: Energy Policy

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http://publications.excas.org/RePEc/exs/exs-wpaper ... and-Institutions.pdf Revised version, 2019 (application/pdf)

Related works:
Journal Article: Renewable energy, trade performance and the conditional role of finance and institutional capacity in sub-Sahara African countries (2019)
Working Paper: Renewable Energy, Trade Performance and the Conditional Role of Finance and Institutional Capacity of sub-Sahara African Countries (2019)
Working Paper: Renewable Energy, Trade Performance and the Conditional Role of Finance and Institutional Capacity of sub-Sahara African Countries (2019)
Working Paper: Renewable Energy, Trade Performance and the Conditional Role of Finance and Institutional Capacity of sub-Sahara African Countries (2019)
Working Paper: Renewable Energy, Trade Performance and the Conditional Role of Finance and Institutional Capacity of sub-Sahara African Countries (2019)
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