The Moderating Role of Green Energy and Energy-Innovation in Environmental Kuznets: Insights from Quantile-Quantile Analysis

Abstract

The recent environmental challenges in Africa emanated from global warming, human activity, limited access to electricity, and over exploitation of natural resources, have contributed to the growth of carbon dioxide (CO2) emissions in the region. This paper empirically investigates the moderating role of green energy consumption and energy innovation in the environmental Kuznets' curve for the Sub-Saharan African (SSA) region using data spanning from 1980 to 2018. Our threshold model found that at least 54 per cent of population need access to energy innovation before the region could be safe from environmental degradation. We conclude that investment in green energy, energy innovation, and conservation of natural resources will help to mitigate environmental degradation in SSA in the long run. Policies should be targeted towards encouraging the consumption of green energy, and more investment in energy innovation beyond the estimated threshold will save the region from pollution and its implications.

The heterogeneous impacts of environmental technologies and research and development spending on green growth in emerging economies: the moderating role of financial globalization

“…In panel data investigations, capturing the individual effects on the entire distribution, as well as outliers, to regulate and classify the conditional heterogeneous covariance effects is crucial, particularly when the error term is not normally distributed (Flores et al, 2014;Musibau et al, 2021). These issues can be captured through the use of quantile regression methods because quantile regression strategies correct the sample size bias caused by endogenous regressors (Canay, 2011) and eliminate the bias caused by distributional heterogeneity (Zhu et al, 2016).…”