IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i3p1333-d1585122.html
   My bibliography  Save this article

Advancing Sustainable Development: Empirical Insights on Energy Poverty in ECOWAS Through Green Financing, Technological Innovation and Economic Empowerment

Author

Listed:
  • Alrmah Saied R Amer

    (Department of Business Administration, Cyprus Health and Social Sciences University, North Nicosia 99010, Turkey)

  • Ponle Henry Kareem

    (Department of Business Administration, Cyprus Health and Social Sciences University, North Nicosia 99010, Turkey)

Abstract

Energy poverty is a new issue in the world and the developing nations are no exception. The West African nations exhibit serious problems on the accessibility and affordability of energy in rural areas and in urban areas. The major concern is the conventional fuels that they widely use as alternatives once faced with energy access problems. These fuels damage the surroundings and deteriorate the health systems of people. Therefore, this study is motivated in addressing the energy poverty issues in West African nations and informing vigorous mechanisms that are essential in solving this crisis. The lack of studies and the lack of robust policies to inform ways that can be adopted to lower energy poverty in this region require new contemporary studies to be presented. Thus, this study examines the interplay of green finance, income and technology in reducing energy poverty in West African nations. The fourteen West African nations are therefore examined and their data for the period 2004 to 2020 are used. Data analysis methodologies adopted ensure the employment of the “method of moments quantile regression” technique to ensure that problems of “cross-sectional dependence” and “heterogeneity” are overcome. Our findings shows that energy poverty in West African nations could be lowered with advancements in technology, utilization of green finance and improvements in the income levels in this region by magnitudes of 17 to 21 units, 0.15 to 0.82% and 0.39 to 1.47 units, respectively. The income generated from the natural resources and foreign direct investment inflows fails to reduce energy poverty and worsens it by magnitudes of 0.33 to 0.48 units and 0.12 units, respectively. Therefore, we show that improvements in institutional quality and the adoption of green technological tools are key to reducing energy poverty.

Suggested Citation

  • Alrmah Saied R Amer & Ponle Henry Kareem, 2025. "Advancing Sustainable Development: Empirical Insights on Energy Poverty in ECOWAS Through Green Financing, Technological Innovation and Economic Empowerment," Sustainability, MDPI, vol. 17(3), pages 1-17, February.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1333-:d:1585122
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/3/1333/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/3/1333/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Okere, Kingsley Ikechukwu & Dimnwobi, Stephen Kelechi & Ekesiobi, Chukwunonso & Onuoha, Favour Chidinma, 2023. "Turning the tide on energy poverty in sub-Saharan Africa: Does public debt matter?," Energy, Elsevier, vol. 282(C).
    2. Wang, Yao & Du, Zhili, 2024. "Has energy poverty entangled the households by hindering the filial generation?," Energy Policy, Elsevier, vol. 186(C).
    3. Hashem Pesaran, M. & Yamagata, Takashi, 2008. "Testing slope homogeneity in large panels," Journal of Econometrics, Elsevier, vol. 142(1), pages 50-93, January.
    4. Bai, Rongjun & Liu, Yan, 2023. "Natural resources as a source of financing energy poverty reduction? Resources extraction perspective," Resources Policy, Elsevier, vol. 82(C).
    5. Feng, Yanchao & Hu, Jin & Afshan, Sahar & Irfan, Muhammad & Hu, Mingjun & Abbas, Shujaat, 2023. "Bridging resource disparities for sustainable development: A comparative analysis of resource-rich and resource-scarce countries," Resources Policy, Elsevier, vol. 85(PA).
    6. Frederick van der Ploeg & Steven Poelhekke, 2009. "Volatility and the natural resource curse," Oxford Economic Papers, Oxford University Press, vol. 61(4), pages 727-760, October.
    7. Deka, Abraham, 2024. "The role of natural resources rent, trade openness and technological innovations on environmental sustainability – Evidence from resource-rich african nations," Resources Policy, Elsevier, vol. 98(C).
    8. Sha, Zhiping, 2023. "The effect of globalisation, foreign direct investment, and natural resource rent on economic recovery: Evidence from G7 economies," Resources Policy, Elsevier, vol. 82(C).
    9. Beck, Nathaniel & Katz, Jonathan N., 1995. "What To Do (and Not to Do) with Time-Series Cross-Section Data," American Political Science Review, Cambridge University Press, vol. 89(3), pages 634-647, September.
    10. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    11. M. Hashem Pesaran, 2015. "Testing Weak Cross-Sectional Dependence in Large Panels," Econometric Reviews, Taylor & Francis Journals, vol. 34(6-10), pages 1089-1117, December.
    12. Erick C. Jones & Ariadna Reyes, 2023. "Identifying Themes in Energy Poverty Research: Energy Justice Implications for Policy, Programs, and the Clean Energy Transition," Energies, MDPI, vol. 16(18), pages 1-15, September.
    13. Abrahams, Daniel, 2020. "Conflict in abundance and peacebuilding in scarcity: Challenges and opportunities in addressing climate change and conflict," World Development, Elsevier, vol. 132(C).
    14. Frees, Edward W., 1995. "Assessing cross-sectional correlation in panel data," Journal of Econometrics, Elsevier, vol. 69(2), pages 393-414, October.
    15. Khan, Zeeshan & Hossain, Mohammad Razib & Badeeb, Ramez Abubakr & Zhang, Changyong, 2023. "Aggregate and disaggregate impact of natural resources on economic performance: Role of green growth and human capital," Resources Policy, Elsevier, vol. 80(C).
    16. George E. Halkos & Panagiotis-Stavros C. Aslanidis, 2023. "Addressing Multidimensional Energy Poverty Implications on Achieving Sustainable Development," Energies, MDPI, vol. 16(9), pages 1-30, April.
    17. Dong, Kangyin & Wei, Shuo & Liu, Yang & Zhao, Jun, 2023. "How does energy poverty eradication promote common prosperity in China? The role of labor productivity," Energy Policy, Elsevier, vol. 181(C).
    18. Magnani, Natalia & Vaona, Andrea, 2016. "Access to electricity and socio-economic characteristics: Panel data evidence at the country level," Energy, Elsevier, vol. 103(C), pages 447-455.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Farouk M. Frnana & Ponle Henry Kareem, 2025. "Pathways to Achieving Low Energy-Poverty Problems in Central African Nations with Government Effectiveness, Technology, Natural Resources and Sustainable Economic Growth," Sustainability, MDPI, vol. 17(3), pages 1-15, January.
    2. Marcus Box & Karl Gratzer & Xiang Lin, 2023. "Self-employment, corruption, and property rights: a comparative analysis of European and CEE economies," SN Business & Economics, Springer, vol. 3(1), pages 1-29, January.
    3. Schneider, Nicolas & Strielkowski, Wadim, 2023. "Modelling the unit root properties of electricity data—A general note on time-domain applications," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 618(C).
    4. Halunga, Andreea G. & Orme, Chris D. & Yamagata, Takashi, 2017. "A heteroskedasticity robust Breusch–Pagan test for Contemporaneous correlation in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 198(2), pages 209-230.
    5. Le Clech, Néstor A., 2024. "Policy market orientation, property rights, and corruption effects on the rent of non-renewable resources in Latin America and the Caribbean," Resources Policy, Elsevier, vol. 91(C).
    6. Deka, Abraham, 2024. "The role of natural resources rent, trade openness and technological innovations on environmental sustainability – Evidence from resource-rich african nations," Resources Policy, Elsevier, vol. 98(C).
    7. Soto, Gonzalo H & Martinez-Cobas, Xavier, 2024. "Green energy policies and energy poverty in Europe: Assessing low carbon dependency and energy productivity," Energy Economics, Elsevier, vol. 136(C).
    8. Ronghui Xie & Shengjie Zhang, 2024. "Re†examining the impact of global foreign direct investment (FDI) inflows on haze pollution—considering the moderating mechanism of environmental regulation," Energy & Environment, , vol. 35(6), pages 3186-3209, September.
    9. Opoku, Eric Evans Osei & Boachie, Micheal Kofi, 2020. "The environmental impact of industrialization and foreign direct investment," Energy Policy, Elsevier, vol. 137(C).
    10. Shreya Pal, 2024. "The International Capital Flows and Domestic Savings–domestic Investment Nexus: A Comparative Evidence Between Heterogeneous Developing Regions," South Asian Journal of Macroeconomics and Public Finance, , vol. 13(2), pages 169-212, December.
    11. Jin, Taeyoung, 2022. "Impact of heat and electricity consumption on energy intensity: A panel data analysis," Energy, Elsevier, vol. 239(PA).
    12. Niklas Potrafke, 2012. "Political cycles and economic performance in OECD countries: empirical evidence from 1951–2006," Public Choice, Springer, vol. 150(1), pages 155-179, January.
    13. Dogan, Eyup & Altinoz, Buket & Madaleno, Mara & Taskin, Dilvin, 2020. "The impact of renewable energy consumption to economic growth: A replication and extension of Inglesi-Lotz (2016)," Energy Economics, Elsevier, vol. 90(C).
    14. Yu Shuangshuang & Wenzhong Zhu & Nafeesa Mughal & Sergio Ivan Vargas Aparcana & Iskandar Muda, 2023. "The impact of education and digitalization on female labour force participation in BRICS: an advanced panel data analysis," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    15. Lei, Xiying & Alharthi, Majed & Ahmad, Ishtiaq & Aziz, Babar & Abdin, Zain ul, 2022. "Importance of international relations for the promotion of renewable energy, preservation of natural resources and environment: Empirics from SEA nations," Renewable Energy, Elsevier, vol. 196(C), pages 1250-1257.
    16. Muhammad Shafiullah & Luke Emeka Okafor & Usman Khalid, 2019. "Determinants of international tourism demand: Evidence from Australian states and territories," Tourism Economics, , vol. 25(2), pages 274-296, March.
    17. Zhao, Wen-Xuan & Samour, Ahmed & Yi, Kefu & Al-Faryan, Mamdouh Abdulaziz Saleh, 2023. "Do technological innovation, natural resources and stock market development promote environmental sustainability? Novel evidence based on the load capacity factor," Resources Policy, Elsevier, vol. 82(C).
    18. Masako Ikegami & Zijian Wang, 2024. "Does energy technology R&D save energy in OECD countries?," Economic Change and Restructuring, Springer, vol. 57(2), pages 1-22, April.
    19. Beri, Parfait & Molem, Christopher Sama, 2024. "The impact of economic globalisation on labour market outcomes in Africa," MPRA Paper 122554, University Library of Munich, Germany.
    20. Tiwari, Sunil & Mentel, Grzegorz & Si Mohammed, Kamel & Rehman, Mohd Ziaur & Lewandowska, Anna, 2024. "Unveiling the role of natural resources, energy transition and environmental policy stringency for sustainable environmental development: Evidence from BRIC +1," Resources Policy, Elsevier, vol. 96(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:3:p:1333-:d:1585122. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.