Determinants of renewable energy growth in Sub-Saharan Africa: Evidence from panel ARDL

Abstract

Given the importance of renewable energy in the discussion of a reliable and sustainable energy future, it is imperative to understand its main determinants and to draw result implications for energy policy. This study analyses these determinants for Sub-Saharan Africa. Using a panel data technique, namely the panel-ARDL model for a period covering 1990-2014, the results suggest that economic development (per capita GDP) and an increased use of energy aid renewable energy development while population growth impedes it. Furthermore, the study investigates the potentials and current status of renewable energy in Sub-Saharan Africa. This article shows that although the region has great potential for developing renewable energy such as wind, biomass, solar and hydropower, dispersed throughout the continent, this potential has not been fully explored, even though many resources are plentifully available, and evidence good economic potential.

What are the Main Determinants of Renewable Energy Consumption? A Panel Threshold Regression Approach

“…Renewable energy potential, fossil fuel and nuclear contribution to electricity generation and continuous commitment for renewable energy consumption were also found to be important drivers by Aguirre and Ibikunle (2014) in addition to Kyoto Protocol ratification, energy use, industrial electricity price and carbon emissions. Higher renewable energy potential increases renewable energy consumption because of higher availability of resources (da Silva et al, 2018;Marques et al, 2010), however, quality and quantity of these potentials are important (Bird et al, 2005). The effect of continuous commitment for renewable energy consumption can be explained as follows.…”

“…Moreover, previous renewable energy investments and infrastructure may lead to reduction in fixed costs creating economies of scale and higher profits with continuous commitment to renewables and these can increase the use of renewables (Aguirre and Ibikunle, 2014;Marques et al, 2010). Ratification of Kyoto protocol was taken as a boosting institutional factor and an incentive for renewable energy consumption as it is an important international agreement for the mitigation of greenhouse gas emissions putting obligations on countries for the emission reduction through the commitment of legally binding targets and may provide technology transfer (Aguirre and Ibikunle, 2014;da Silva et al, 2018). On the other hand, Pfeiffer and Mulder (2013) showed that real income, energy resource diversification and schooling level affect the renewable energy consumption statistically significant and positively; whereas, they found negative effects of trade openness, foreign direct investment, policy support programs, electricity consumption growth and fossil fuel production.…”

“…Akar (2016) explained this finding as the insufficient level of economic growth in Balkan countries for supporting the highly expensive renewable energy investments. Also, in order to meet higher electricity demand resulted from population growth, countries will increase the base load electricity generation which is mostly based on fossil fuels or electricity generation based on renewables (Carley, 2009;da Silva et al, 2018) depending on the economic situation of a country. For further explanation for these results, one can refer to the related studies.…”

Bioenergy Yields from Sequential Bioethanol and Biomethane Production: An Optimized Process Flow

“…Just in Nigeria, the biomass potential is about 144 million tonnes per year and the potential of its lignocellulosic agricultural waste varies between 0.4 and 2.3 t/ha, as reported in previous publications [9]. However, the utilisation of biomass resources for electricity, biofuel, or biogas generation has not been extensively utilised or studied in most African countries [9][10][11]. From the different lignocellulosic materials currently available in Nigeria, Napier grass has been reported to be a particularly attractive feedstock for production of biofuels and bio-based products mainly due to its high cellulose content (34.2-40%), high yields per unit area, tolerance to drought, and a good water use efficiency (ratio of water used by the crop to water lost by evapotranspiration) [12][13][14][15][16][17].Napier grass is a perennial C4 plant endemic to Sub-Saharan Africa with a high heating value biomass (16.58 MJ/kg) [18].…”

Renewable Energy, Regulation, Employment and Environmental Sustainability in Sub-Saharan Africa

“…Emphasizing on the determinants of renewable energy for Sub-Saharan Africa, Da- Silva et al (2018) used a panel ARDL method with data spanning the period of 1990 to 2014. The finding shows that economic development and energy consumption facilitates renewable energy creation, while increase in population reduces renewable energy development.…”