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Economic and geopolitical drivers of renewable energy in Sub-Saharan Africa: A panel data analysis

Author

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  • Villar-Roldán, Juan J.
  • Galiano, Aida
  • Martín-Álvarez, Juan Manuel

Abstract

This paper aims to explore the gaps in previous research on renewable energy development in Sub-Saharan Africa by examining the impact of geopolitical and economic variables. The study focuses on the factors influencing renewable energy expansion, highlighting the significant progress made by African countries in enhancing their renewable energy capacity. The research employs panel data analysis to investigate the role of liberal democracy, government financial management, and electricity access in promoting renewable energy production. Our findings reveal that higher levels of democracy and improved electricity access in urban areas are positively associated with increased renewable energy production. Also, the positive impact of the Gross Debt ratio underscores the crucial role of government spending in supporting renewable energy projects. Conversely, lower political stability and electricity access are linked to decreased renewable energy development, emphasizing the need for a stable and well-regulated environment. The negative impact of electricity access highlights the necessity for targeted policies to improve energy distribution networks and support renewable energy initiatives in rural environments. The study concludes by underscoring the importance of robust frameworks and discussing a broad range of policy instruments to promote private investments and foster sustainable growth in the renewable energy sector.

Suggested Citation

  • Villar-Roldán, Juan J. & Galiano, Aida & Martín-Álvarez, Juan Manuel, 2025. "Economic and geopolitical drivers of renewable energy in Sub-Saharan Africa: A panel data analysis," Energy Economics, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:eneeco:v:147:y:2025:i:c:s0140988325003032
    DOI: 10.1016/j.eneco.2025.108479
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    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • F50 - International Economics - - International Relations, National Security, and International Political Economy - - - General

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