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The Role of Industrialization and Renewable Energy on Environmental Quality in Oil Exporting Sub-Saharan African Countries

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  • Egunjobi, T. Adenike
  • Akam, Darlington Uzoma

Abstract

As countries grow, the call for achieving industrial sustainability becomes crucial for their development. As a result, this paper investigates the role of industrialization and renewable energy on environmental quality (proxied as load capacity factor) across seven (7) oil-exporting SSA countries between 1990 and 2023. Using cross-sectional dependence induced techniques such as panel-corrected standard error (PCSE) and feasible generalized least squares (FGLS), this study finds that while a unit increase in industrialization exacerbates environmental quality by 0.47 units, a unit increase in renewable energy plays an important role in improving environmental quality by 0.06 units. However, the amount of renewable energy consumption does not have the full potential to reduce the adverse environmental effects of industrialization. Further, the result indicates that while population reduces ecological quality, economic growth improves it. The study recommends that policymakers in oil-exporting countries should tailor their policies towards environmental regulation and encourage the use of eco-friendly technologies in the manufacturing sectors, through tax incentive policies, green industrial zones, and benchmarking ecological performance across these countries.

Suggested Citation

  • Egunjobi, T. Adenike & Akam, Darlington Uzoma, 2025. "The Role of Industrialization and Renewable Energy on Environmental Quality in Oil Exporting Sub-Saharan African Countries," African Journal of Economic Review, African Journal of Economic Review, vol. 13(2).
    • Handle: RePEc:ags:afjecr:362946
    DOI: 10.22004/ag.econ.362946
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