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Funding the Green Transition: Governance Quality, Public Debt, and Renewable Energy Consumption in Sub-Saharan Africa

Author

Listed:
  • Favour C. Onuoha

    (Evangel University Akaeze, Nigeria)

  • Stephen K. Dimnwobi

    (Nnamdi Azikiwe University, Awka, Nigeria)

  • Kingsley I. Okere

    (Gregory University, Uturu, Nigeria)

  • Chukwunonso Ekesiobi

    (Igbariam, Nigeria)

Abstract

Prompted by the renewable energy funding challenge in sub-Saharan Africa (SSA) amid surging public debt in the region, this study investigates the moderating role of governance quality in the relationship between public debt and REC in the region using the Feasible Generalized Least Squares. The study established that public debt positively impacts REC, but the interactive effect of governance quality and public debt impedes REC. Policy prescriptions are put forward to address the funding challenges of transitioning to a green energy future in SSA by highlighting the critical role of governance.

Suggested Citation

  • Favour C. Onuoha & Stephen K. Dimnwobi & Kingsley I. Okere & Chukwunonso Ekesiobi, 2023. "Funding the Green Transition: Governance Quality, Public Debt, and Renewable Energy Consumption in Sub-Saharan Africa," Working Papers of the African Governance and Development Institute. 23/028, African Governance and Development Institute..
    • Handle: RePEc:agd:wpaper:23/028
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    Cited by:

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    4. Hyun-Chool Lee & Youngbin Choi, 2024. "Application of Article 6-Linked Debt-for-Climate Swap for the Clean Energy Transition in Africa," Sustainability, MDPI, vol. 16(17), pages 1-22, September.
    5. Auteri, Monica & Mele, Marco & Ruble, Isabella & Magazzino, Cosimo, 2024. "The double sustainability: The link between government debt and renewable energy," The Journal of Economic Asymmetries, Elsevier, vol. 29(C).

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    Keywords

    Public Debt; Renewable Energy Consumption; Governance Quality; Sub-Saharan Africa;
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