1. Climate change mitigation role of renewable energy consumption: Does institutional quality matter in the case of reducing Africa's carbon dioxide emissions?
- Author
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Kwakwa, Paul Adjei
- Subjects
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CARBON emissions , *CLIMATE change mitigation , *RENEWABLE energy sources , *CARBON dioxide mitigation , *ENERGY consumption , *ENVIRONMENTAL degradation , *CLIMATE change - Abstract
Renewable energy and institutions have emerged among other variables touted to address climate change problems. However, empirical results have been conflicting. With a relatively poorer state of institutional quality and a lower level of renewable energy development amidst rising carbon dioxide (CO 2) emissions in Africa, the study assesses: a) the direct effect of renewable energy and institutional quality on CO 2 emissions in Africa; and b) the moderation role of institutional quality on the effect of renewable energy on CO 2 emissions in Africa. The study relies on panel data covering 2002–2021 for 32 African countries. The Fully-Modified OLS regression method is employed to analyze the data based on the environmental Kuznets curve (EKC) hypothesis and Stochastic Impacts by Regression on Population, Affluence, & Technology (STIRPAT) model. The results show that urbanization and trade openness increase CO 2 emissions. Although income has a positive effect on carbon emissions, the square term has a negative confirming the EKC hypothesis. Renewable energy also reduces CO 2 emissions. Institutional quality variables of control of corruption, rule of law, regulatory quality, political stability and absence of violence, voice and accountability, government effectiveness and institutional index created from the above indicators reduce CO 2 emissions. In addition, except government effectiveness, the remaining indicators of institutional quality negatively moderate the effect of renewable energy on CO 2 emissions. The results among other things imply that intensifying the development and usage of renewable energy would help address the rising carbon dioxide emissions trend in Africa. Also, strengthening institutions promises to reduce CO 2 emissions. • Determinants of environmental degradation is estimated. • Renewable energy consumption reduces pollution. • Institutions reduce carbon emissions. • Institutions reinforce the effect of renewable energy. [ABSTRACT FROM AUTHOR]
- Published
- 2023
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