Growth threshold-effect on renewable energy consumption in major oil-producing countries in sub-Saharan Africa: a dynamic panel threshold regression estimation

Abstract

Purpose This study aims to explore the relationship between the growth threshold effect on renewable energy consumption (REC) in the major oil-producing countries in sub-Saharan Africa (SSA) over the period 1990–2018. Design/methodology/approach This article used a dynamic panel threshold regression model introduced by Hansen (1996, 1999 and 2000) threshold (TR) models. The procedure is achieved using 5,000 bootstrapping replications and the grid search to obtain the asymptotic distribution and p-values. For the long-run relationship among our variables, the author followed the process in Pesaran et al. (1999) pooled mean group (PMG) for heterogeneous panels. Furthermore, for the robustness of our empirical results due to the sensitivity of the results to outliers, the author used the approach by Cook (1979) distance measure. The author applied quantile (QR) regression to explore the distribution of dependent variables following Bassett and Koenker (1982) and Koenker and Bassett (1978) approaches. Findings The results from the threshold effect test and threshold regression revealed a significant single threshold effect of growth level on REC. Furthermore, the result from the PMG estimation showed the growth of the variable, energy intensity, consumer prices and CO2 emissions play a significant role in REC in major oil-producing countries in SSA. The growth threshold estimation results indicated one significant threshold value of 1.013% at one period lagged of real growth. The outlier’s sensitivity detention greatly influenced our empirical results. Originality/value The article filled the literature gap by applying a combined measure that is robustness to detect outliers in the data, which none of the studies in the literature addresses hitherto. Further, the article extends the quantile regression to growth – REC literature.

Governance and renewable energy consumption in Sub-Saharan Africa

“…First, it is now apparent that SSA is host to some of the worst systems of energy grid in the world, with the obvious lack of political will and financial resources to address corresponding policy syndromes related to environmental pollution and adoption of cleaner sources of energy (Jarrett, 2017). In fact, there is a bulk of contemporary literature supporting the position that concerns of poor economic performance and environmental degradation and energy crisis in Africa are substantially traceable to issues of governance, inter alia (Nathaniel & Iheonu, 2019;Asongu, Iheonu & Odo, 2019;Joshua & Alola, 2020;Nathaniel & Bekun, 2020;Joshua & Bekun & Sakordie, 2020;Abdulqadir, 2020). However, despite the scholarly and policy concerns surrounding the importance of governance in driving environmental reforms for energy sustainability, SSA has not yet received the scholarly attention it deserves.…”

Governance and renewable energy consumption in sub-Saharan Africa

“…First, it is now apparent that SSA is host to some of the worst systems of energy grid in the world, with the obvious lack of political will and financial resources to address corresponding policy syndromes related to environmental pollution and adoption of cleaner sources of energy (Jarrett, 2017). In fact, there is a bulk of contemporary literature supporting the position that concerns of poor economic performance and environmental degradation and energy crisis in Africa are substantially traceable to issues of governance, inter alia (Nathaniel & Iheonu, 2019;Asongu, Iheonu & Odo, 2019;Joshua & Alola, 2020;Nathaniel & Bekun, 2020;Joshua & Bekun & Sakordie, 2020;Abdulqadir, 2020). However, despite the scholarly and policy concerns surrounding the importance of governance in driving environmental reforms for energy sustainability, SSA has not yet received the scholarly attention it deserves.…”

Mitigation policy trust on fossil energy consumption in G7 countries: insight from avoidable policy thresholds

“…The model is a nonlinear threshold regression approach by Hansen (1999Hansen ( ,2000 but augmented with policy variables closest to a study by Abdulqadir (2020). The model as in Eq.…”

“…The marginal effect of the coe cient is calculated by taking the partial derivate in Eq. ( 7) with respect to the regressors, thus nding the coe cient (Abdulqadir, 2020(Abdulqadir, , 2022.…”