IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v193y2022icp554-564.html
   My bibliography  Save this article

Regional heterogeneities in the absorptive capacity of renewable energy deployment in Africa

Author

Listed:
  • Manu, Emmanuel Kwaku
  • Chen, George S.
  • Asante, Dennis

Abstract

We critically evaluate the absorptive capacity of renewable energy deployment in Africa. Using data for the 1980–2017 period and dividing the 20 countries into West Africa and East Africa, we find significant regional heterogeneities in the absorptive capacity of renewable energy deployment. Specially, we show that West Africa has a stronger capacity to embrace the adaptation of renewable energy than East Africa. Moreover, we find that renewable energy deployment exhibits path dependency in both regions. In general, our findings suggest that there are significant potentials for both regions to benefit from renewable energy deployment. However, without the financial backing by policymakers, renewable energy deployment is likely to be delayed in implementation, exposing these regions to economic and environmental vulnerabilities in the long run.

Suggested Citation

  • Manu, Emmanuel Kwaku & Chen, George S. & Asante, Dennis, 2022. "Regional heterogeneities in the absorptive capacity of renewable energy deployment in Africa," Renewable Energy, Elsevier, vol. 193(C), pages 554-564.
    • Handle: RePEc:eee:renene:v:193:y:2022:i:c:p:554-564
    DOI: 10.1016/j.renene.2022.05.019
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148122006590
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.renene.2022.05.019?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Chen, Yulong & Wang, Zheng & Zhong, Zhangqi, 2019. "CO2 emissions, economic growth, renewable and non-renewable energy production and foreign trade in China," Renewable Energy, Elsevier, vol. 131(C), pages 208-216.
    2. Salim, Ruhul & Yao, Yao & Chen, George & Zhang, Lin, 2017. "Can foreign direct investment harness energy consumption in China? A time series investigation," Energy Economics, Elsevier, vol. 66(C), pages 43-53.
    3. Pesaran, M.H. & Shin, Y., 1995. "An Autoregressive Distributed Lag Modelling Approach to Cointegration Analysis," Cambridge Working Papers in Economics 9514, Faculty of Economics, University of Cambridge.
    4. Vural, Gulfer, 2020. "Renewable and non-renewable energy-growth nexus: A panel data application for the selected Sub-Saharan African countries," Resources Policy, Elsevier, vol. 65(C).
    5. David E. Bloom & Jeffrey D. Sachs, 1998. "Geography, Demography, and Economic Growth in Africa," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 29(2), pages 207-296.
    6. Salim, Ruhul A. & Hassan, Kamrul & Shafiei, Sahar, 2014. "Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries," Energy Economics, Elsevier, vol. 44(C), pages 350-360.
    7. Przychodzen, Wojciech & Przychodzen, Justyna, 2020. "Determinants of renewable energy production in transition economies: A panel data approach," Energy, Elsevier, vol. 191(C).
    8. M. Hashem Pesaran, 2021. "General diagnostic tests for cross-sectional dependence in panels," Empirical Economics, Springer, vol. 60(1), pages 13-50, January.
    9. Charfeddine, Lanouar & Kahia, Montassar, 2019. "Impact of renewable energy consumption and financial development on CO2 emissions and economic growth in the MENA region: A panel vector autoregressive (PVAR) analysis," Renewable Energy, Elsevier, vol. 139(C), pages 198-213.
    10. Kapetanios, G. & Pesaran, M. Hashem & Yamagata, T., 2011. "Panels with non-stationary multifactor error structures," Journal of Econometrics, Elsevier, vol. 160(2), pages 326-348, February.
    11. Smyth, Russell & Narayan, Paresh Kumar, 2015. "Applied econometrics and implications for energy economics research," Energy Economics, Elsevier, vol. 50(C), pages 351-358.
    12. Lund, Henrik, 2007. "Renewable energy strategies for sustainable development," Energy, Elsevier, vol. 32(6), pages 912-919.
    13. Bhattacharya, Mita & Awaworyi Churchill, Sefa & Paramati, Sudharshan Reddy, 2017. "The dynamic impact of renewable energy and institutions on economic output and CO2 emissions across regions," Renewable Energy, Elsevier, vol. 111(C), pages 157-167.
    14. Gyamfi, Bright Akwasi & Bein, Murad A. & Udemba, Edmund Ntom & Bekun, Festus Victor, 2021. "Investigating the pollution haven hypothesis in oil and non-oil sub-Saharan Africa countries: Evidence from quantile regression technique," Resources Policy, Elsevier, vol. 73(C).
    15. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    16. Buhari Doğan & Oana M. Driha & Daniel Balsalobre Lorente & Umer Shahzad, 2021. "The mitigating effects of economic complexity and renewable energy on carbon emissions in developed countries," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 1-12, January.
    17. Asongu, Simplice A. & Odhiambo, Nicholas M., 2021. "Inequality, finance and renewable energy consumption in Sub-Saharan Africa," Renewable Energy, Elsevier, vol. 165(P1), pages 678-688.
    18. Bilgili, Faik & Koçak, Emrah & Bulut, Ümit, 2016. "The dynamic impact of renewable energy consumption on CO2 emissions: A revisited Environmental Kuznets Curve approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 54(C), pages 838-845.
    19. Xu, Deyi & Sheraz, Muhammad & Hassan, Arshad & Sinha, Avik & Ullah, Saif, 2022. "Financial development, renewable energy and CO2 emission in G7 countries: New evidence from non-linear and asymmetric analysis," Energy Economics, Elsevier, vol. 109(C).
    20. Nguyen, Kim Hanh & Kakinaka, Makoto, 2019. "Renewable energy consumption, carbon emissions, and development stages: Some evidence from panel cointegration analysis," Renewable Energy, Elsevier, vol. 132(C), pages 1049-1057.
    21. Ang, James B., 2007. "CO2 emissions, energy consumption, and output in France," Energy Policy, Elsevier, vol. 35(10), pages 4772-4778, October.
    22. Apergis, Nicholas & Payne, James E., 2014. "Renewable energy, output, CO2 emissions, and fossil fuel prices in Central America: Evidence from a nonlinear panel smooth transition vector error correction model," Energy Economics, Elsevier, vol. 42(C), pages 226-232.
    23. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    24. Adewuyi, Adeolu O., 2016. "Determinants of import demand for non-renewable energy (petroleum) products: Empirical evidence from Nigeria," Energy Policy, Elsevier, vol. 95(C), pages 73-93.
    25. Thijs ten Raa & William H. Greene (ed.), 2019. "The Palgrave Handbook of Economic Performance Analysis," Springer Books, Springer, number 978-3-030-23727-1, November.
    26. Abanda, F.H. & Ng’ombe, A. & Keivani, R. & Tah, J.H.M., 2012. "The link between renewable energy production and gross domestic product in Africa: A comparative study between 1980 and 2008," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2147-2153.
    27. Sorrell, Steve, 2015. "Reducing energy demand: A review of issues, challenges and approaches," Renewable and Sustainable Energy Reviews, Elsevier, vol. 47(C), pages 74-82.
    28. Chen, Yulong & Zhao, Jincai & Lai, Zhizhu & Wang, Zheng & Xia, Haibin, 2019. "Exploring the effects of economic growth, and renewable and non-renewable energy consumption on China’s CO2 emissions: Evidence from a regional panel analysis," Renewable Energy, Elsevier, vol. 140(C), pages 341-353.
    29. Rafindadi, Abdulkadir Abdulrashid & Ozturk, Ilhan, 2017. "Impacts of renewable energy consumption on the German economic growth: Evidence from combined cointegration test," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 1130-1141.
    30. Hasan Tuluy, 2016. "Regional economic integration in Africa," Papers Presented at Global Meetings of the Emerging Markets Forum 2016africaintegration, Emerging Markets Forum.
    31. Ibrahim, Muazu & Alagidede, Paul, 2018. "Effect of financial development on economic growth in sub-Saharan Africa," Journal of Policy Modeling, Elsevier, vol. 40(6), pages 1104-1125.
    32. Jonathan J. Buonocore & Ernani Choma & Aleyda H. Villavicencio & John D. Spengler & Dinah A. Koehler & John S. Evans & Jos Lelieveld & Piet Klop & Ramon Sanchez-Pina, 2019. "Correction: Metrics for the sustainable development goals: renewable energy and transportation," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-2, December.
    33. Rahman, Mohammad Mafizur & Velayutham, Eswaran, 2020. "Renewable and non-renewable energy consumption-economic growth nexus: New evidence from South Asia," Renewable Energy, Elsevier, vol. 147(P1), pages 399-408.
    34. M. Hashem Pesaran, 2007. "A simple panel unit root test in the presence of cross-section dependence," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 22(2), pages 265-312.
    35. Dilek Temiz Dinç & Ece C. Akdoğan, 2019. "Renewable Energy Production, Energy Consumption and Sustainable Economic Growth in Turkey: A VECM Approach," Sustainability, MDPI, vol. 11(5), pages 1-14, February.
    36. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    37. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
    38. Bugaje, I.M., 2006. "Renewable energy for sustainable development in Africa: a review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 10(6), pages 603-612, December.
    39. da Silva, Patrícia Pereira & Cerqueira, Pedro André & Ogbe, Wojolomi, 2018. "Determinants of renewable energy growth in Sub-Saharan Africa: Evidence from panel ARDL," Energy, Elsevier, vol. 156(C), pages 45-54.
    40. Yoro, Kelvin O. & Daramola, Michael O. & Sekoai, Patrick T. & Wilson, Uwemedimo N. & Eterigho-Ikelegbe, Orevaoghene, 2021. "Update on current approaches, challenges, and prospects of modeling and simulation in renewable and sustainable energy systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 150(C).
    41. Jacob Wanjala Musila, 2005. "The Intensity of Trade Creation and Trade Diversion in COMESA, ECCAS and ECOWAS: A Comparative Analysis," Journal of African Economies, Centre for the Study of African Economies, vol. 14(1), pages 117-141, March.
    42. Jin, Taeyoung & Kim, Jinsoo, 2018. "What is better for mitigating carbon emissions – Renewable energy or nuclear energy? A panel data analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 464-471.
    43. Destek, Mehmet Akif & Aslan, Alper, 2017. "Renewable and non-renewable energy consumption and economic growth in emerging economies: Evidence from bootstrap panel causality," Renewable Energy, Elsevier, vol. 111(C), pages 757-763.
    44. Ulusoy, Veysel & Demiralay, Sercan, 2017. "Energy demand and stock market development in OECD countries: A panel data analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 141-149.
    45. Anton, Sorin Gabriel & Afloarei Nucu, Anca Elena, 2020. "The effect of financial development on renewable energy consumption. A panel data approach," Renewable Energy, Elsevier, vol. 147(P1), pages 330-338.
    46. Jonathan J. Buonocore & Ernani Choma & Aleyda H. Villavicencio & John D. Spengler & Dinah A. Koehler & John S. Evans & Jos Lelieveld & Piet Klop & Ramon Sanchez-Pina, 2019. "Metrics for the sustainable development goals: renewable energy and transportation," Palgrave Communications, Palgrave Macmillan, vol. 5(1), pages 1-14, December.
    47. Schwerhoff, Gregor & Sy, Mouhamadou, 2017. "Financing renewable energy in Africa – Key challenge of the sustainable development goals," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 393-401.
    48. Adedoyin, Festus Fatai & Ozturk, Ilhan & Bekun, Festus Victor & Agboola, Phillips O. & Agboola, Mary Oluwatoyin, 2021. "Renewable and non-renewable energy policy simulations for abating emissions in a complex economy: Evidence from the novel dynamic ARDL," Renewable Energy, Elsevier, vol. 177(C), pages 1408-1420.
    49. Ocal, Oguz & Aslan, Alper, 2013. "Renewable energy consumption–economic growth nexus in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 28(C), pages 494-499.
    50. Ackah, Ishmael & Kizys, Renatas, 2015. "Green growth in oil producing African countries: A panel data analysis of renewable energy demand," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1157-1166.
    51. Acheampong, Alex O. & Dzator, Janet & Savage, David A., 2021. "Renewable energy, CO2 emissions and economic growth in sub-Saharan Africa: Does institutional quality matter?," Journal of Policy Modeling, Elsevier, vol. 43(5), pages 1070-1093.
    52. Adedoyin, Festus Fatai & Ozturk, Ilhan & Agboola, Mary Oluwatoyin & Agboola, Phillips O. & Bekun, Festus Victor, 2021. "The implications of renewable and non-renewable energy generating in Sub-Saharan Africa: The role of economic policy uncertainties," Energy Policy, Elsevier, vol. 150(C).
    53. Narayan, Paresh Kumar & Narayan, Seema, 2005. "Estimating income and price elasticities of imports for Fiji in a cointegration framework," Economic Modelling, Elsevier, vol. 22(3), pages 423-438, May.
    54. Marques, António Cardoso & Fuinhas, José Alberto, 2011. "Drivers promoting renewable energy: A dynamic panel approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(3), pages 1601-1608, April.
    55. Ozcan, Burcu & Ozturk, Ilhan, 2019. "Renewable energy consumption-economic growth nexus in emerging countries: A bootstrap panel causality test," Renewable and Sustainable Energy Reviews, Elsevier, vol. 104(C), pages 30-37.
    56. Apergis, Nicholas & Payne, James E., 2012. "Renewable and non-renewable energy consumption-growth nexus: Evidence from a panel error correction model," Energy Economics, Elsevier, vol. 34(3), pages 733-738.
    57. Kivyiro, Pendo & Arminen, Heli, 2014. "Carbon dioxide emissions, energy consumption, economic growth, and foreign direct investment: Causality analysis for Sub-Saharan Africa," Energy, Elsevier, vol. 74(C), pages 595-606.
    58. Dogan, Eyup, 2015. "The relationship between economic growth and electricity consumption from renewable and non-renewable sources: A study of Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 534-546.
    59. Kahia, Montassar & Aïssa, Mohamed Safouane Ben & Lanouar, Charfeddine, 2017. "Renewable and non-renewable energy use - economic growth nexus: The case of MENA Net Oil Importing Countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 127-140.
    60. Bhattacharyya, Subhes C. & Timilsina, Govinda R., 2010. "Modelling energy demand of developing countries: Are the specific features adequately captured?," Energy Policy, Elsevier, vol. 38(4), pages 1979-1990, April.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Mary Donkor & Yusheng Kong & Emmanuel Kwaku Manu & Albert Henry Ntarmah & Florence Appiah-Twum, 2022. "Economic Growth and Environmental Quality: Analysis of Government Expenditure and the Causal Effect," IJERPH, MDPI, vol. 19(17), pages 1-23, August.
    2. Che, Xiao-Jing & Zhou, P. & Wang, M., 2022. "The policy effect on photovoltaic technology innovation with regional heterogeneity in China," Energy Economics, Elsevier, vol. 115(C).

    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. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2021. "Determinants of renewable energy consumption: Importance of democratic institutions," Renewable Energy, Elsevier, vol. 179(C), pages 75-83.
    2. Ibrahiem, Dalia M. & Hanafy, Shaimaa A., 2021. "Do energy security and environmental quality contribute to renewable energy? The role of trade openness and energy use in North African countries," Renewable Energy, Elsevier, vol. 179(C), pages 667-678.
    3. Apergis, Nicholas & Pinar, Mehmet, 2021. "The role of party polarization in renewable energy consumption: Fresh evidence across the EU countries," Energy Policy, Elsevier, vol. 157(C).
    4. Marques, António Cardoso & Fuinhas, José Alberto & Neves, Sónia Almeida, 2018. "Ordinary and Special Regimes of electricity generation in Spain: How they interact with economic activity," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1226-1240.
    5. Francisco García-Lillo & Eduardo Sánchez-García & Bartolomé Marco-Lajara & Pedro Seva-Larrosa, 2023. "Renewable Energies and Sustainable Development: A Bibliometric Overview," Energies, MDPI, vol. 16(3), pages 1-22, January.
    6. Zafar, Muhammad Wasif & Shahbaz, Muhammad & Hou, Fujun & Sinha, Avik, 2018. "¬¬¬¬¬¬From Nonrenewable to Renewable Energy and Its Impact on Economic Growth: Silver Line of Research & Development Expenditures in APEC Countries," MPRA Paper 90611, University Library of Munich, Germany, revised 10 Dec 2018.
    7. Adedoyin, Festus Fatai & Ozturk, Ilhan & Agboola, Mary Oluwatoyin & Agboola, Phillips O. & Bekun, Festus Victor, 2021. "The implications of renewable and non-renewable energy generating in Sub-Saharan Africa: The role of economic policy uncertainties," Energy Policy, Elsevier, vol. 150(C).
    8. Chang, Chiu-Lan & Fang, Ming, 2022. "Renewable energy-led growth hypothesis: New insights from BRICS and N-11 economies," Renewable Energy, Elsevier, vol. 188(C), pages 788-800.
    9. Chen, Chaoyi & Pinar, Mehmet & Stengos, Thanasis, 2022. "Renewable energy and CO2 emissions: New evidence with the panel threshold model," Renewable Energy, Elsevier, vol. 194(C), pages 117-128.
    10. Marques, António Cardoso & Junqueira, Thibaut Manuel, 2022. "European energy transition: Decomposing the performance of nuclear power," Energy, Elsevier, vol. 245(C).
    11. Namahoro, J.P. & Nzabanita, J. & Wu, Q., 2021. "The impact of total and renewable energy consumption on economic growth in lower and middle- and upper-middle-income groups: Evidence from CS-DL and CCEMG analysis," Energy, Elsevier, vol. 237(C).
    12. Dogan, Eyup & Seker, Fahri, 2016. "Determinants of CO2 emissions in the European Union: The role of renewable and non-renewable energy," Renewable Energy, Elsevier, vol. 94(C), pages 429-439.
    13. Armeanu, Daniel Stefan & Joldes, Camelia Catalina & Gherghina, Stefan Cristian & Andrei, Jean Vasile, 2021. "Understanding the multidimensional linkages among renewable energy, pollution, economic growth and urbanization in contemporary economies: Quantitative assessments across different income countries’ g," Renewable and Sustainable Energy Reviews, Elsevier, vol. 142(C).
    14. Saidi, Hichem & El Montasser, Ghassen & Ajmi, Noomen, 2018. "Renewable Energy, Quality of Institutions and Economic Growth in MENA Countries: a Panel Cointegration Approach," MPRA Paper 84055, University Library of Munich, Germany.
    15. Syed Asif Ali Naqvi & Bilal Hussain & Ashfaq Ahmad Shah & Muhammad Atiq Ur Rehman Tariq & Muhammad Usman, 2022. "Influence of Economic Growth, Energy Production, and Subcomponents on the Environment: A Regional Level Analytical Modeling," Sustainability, MDPI, vol. 14(22), pages 1-22, November.
    16. Wang, Qiang & Li, Shuyu & Pisarenko, Zhanna, 2020. "Heterogeneous effects of energy efficiency, oil price, environmental pressure, R&D investment, and policy on renewable energy -- evidence from the G20 countries," Energy, Elsevier, vol. 209(C).
    17. Hashemizadeh, Ali & Bui, Quocviet & Kongbuamai, Nattapan, 2021. "Unpacking the role of public debt in renewable energy consumption: New insights from the emerging countries," Energy, Elsevier, vol. 224(C).
    18. David Guan & Ubaldo Comite & Muhammad Safdar Sial & Asma Salman & Boyao Zhang & Stefan B. Gunnlaugsson & Urszula Mentel & Grzegorz Mentel, 2021. "The Impact of Renewable Energy Sources on Financial Development, and Economic Growth: The Empirical Evidence from an Emerging Economy," Energies, MDPI, vol. 14(23), pages 1-13, December.
    19. Jeffrey Kouton, 2021. "The impact of renewable energy consumption on inclusive growth: panel data analysis in 44 African countries," Economic Change and Restructuring, Springer, vol. 54(1), pages 145-170, February.
    20. Karaaslan, Abdulkerim & Çamkaya, Serhat, 2022. "The relationship between CO2 emissions, economic growth, health expenditure, and renewable and non-renewable energy consumption: Empirical evidence from Turkey," Renewable Energy, Elsevier, vol. 190(C), pages 457-466.

    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:eee:renene:v:193:y:2022:i:c:p:554-564. 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: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/renewable-energy .

    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.