The Financial development-renewable energy consumption nexus in Africa: Does governance quality matter?

Toyo Dossou (), Dossou Pascal (), Emmanuelle Kambaye (), Simplice Asongu and Alastaire Alinsato ()
Additional contact information
Toyo Dossou: Abomey-Calavi, Benin
Dossou Pascal: Abomey-Calavi, Benin
Emmanuelle Kambaye: Chengdu, China.
Alastaire Alinsato: Abomey-Calavi, Benin

No 24/020, Working Papers from European Xtramile Centre of African Studies (EXCAS)

Abstract: Although the impact of financial development on renewable energy consumption has been extensively examined in recent years, the study regarding the moderation of governance quality on the financial development on renewable energy consumption nexus is sparse. By filling the gap in the energy economics literature, this study investigates the moderating effect of governance quality on the relationship between financial development on renewable energy consumption for a panel of 33 African countries over the period 2000-2020. The fully modified ordinary least square (FMOLS) estimation techniques has been used to account for the cointegration and cross-sectional dependence, respectively. The results unveil that the impact of governance quality and financial development on renewable energy consumption is negative and statistically significant. Moreover, the results reveal that the FD-governance quality interactions are significant and negative. Governance quality thresholds at which the negative incidence of financial development on renewable energy consumption is completely nullified are 0.825; 2.15; 2.86; 3.52;3.36; and 0,1, respectively.

Keywords: Financial development; renewable energy consumption; governance quality; Africa (search for similar items in EconPapers)
Pages: 40
Date: 2024-01
New Economics Papers: this item is included in nep-ene and nep-env
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Forthcoming: Natural Resources Forum

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http://publications.excas.org/RePEc/exs/exs-wpaper ... -nexus-in-Africa.pdf Revised version, 2024 (application/pdf)

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Working Paper: The Financial development-renewable energy consumption nexus in Africa: Does governance quality matter? (2024)
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