PROMOTING ENVIRONMENTAL SUSTAINABILITY THROUGH ENERGY TRANSITION, NATURAL RESOURCE RENT AND ECONOMIC GROWTH: EVIDENCE FROM SUB-SAHARAN AFRICA
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Abstract
Accelerating Africa’s energy transition is key to achieving sustainable environment amidst recent global energy crisis. This study investigates the impact of energy transition on environmental sustainability in sub-Saharan Africa with special interest on the role economic growth plays for the period 2000 to 2020. Employing Instrumental Variable – Generalised Method of Moments (IV-GMM) approach and a two-stage least squares method for robustness check, results indicate that renewable energy consumption (rec) exerts a negative and significant impact on carbon emission and environmental sustainability both for the first and second models, while renewable electricity output (reo) exerts a negative but non-significant influence on C0_2 in SSA for the first model. Income level in SSA for the two models favours non-renewable energy consumption and deteriorates the environment. We recommend balanced transformative decarbonization until income threshold improves to impact positively on environment sustainability.
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