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How can green finance and economic policies unlock new pathways to clean energy access in Sub-Saharan African nations?

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Listed:
  • Deepa,
  • Ahuja, Suman
  • Soti, Nupur
  • Kumar, Ashish
  • Phore, Jancy
  • Gupta, Sanjeev

Abstract

Access to modern energy remains a critical development challenge across Sub-Saharan Africa, where disparities in electricity availability and clean fuel usage continue to impede progress toward achieving the Sustainable Development Goals. This study investigates the impact of various supply- and demand-side factors on access to electricity (AEL) and access to clean fuels (ACF) across 30 SSA countries over the period from 1995 to 2022. In particular, the study explores the moderating role of institutional quality (IQ) in shaping the effectiveness of green finance (GF). The empirical strategy is preceded by a comprehensive diagnostic process, including tests for cross-sectional dependence, slope heterogeneity, panel unit roots, and cointegration. The results indicate that GF has a consistently positive impact on AEL but a negative effect on ACF at several quantiles, which turns positive in the presence of strong IQ, highlighting a governance-moderated relationship. Government spending and foreign direct investment show a significant positive effect on both dimensions of energy access. Among demand-side variables, economic growth and urbanization positively influence energy access, while industrialization shows a negative association with AEL but a positive impact on ACF. The study outlines key policy implications based on the empirical findings.

Suggested Citation

  • Deepa, & Ahuja, Suman & Soti, Nupur & Kumar, Ashish & Phore, Jancy & Gupta, Sanjeev, 2026. "How can green finance and economic policies unlock new pathways to clean energy access in Sub-Saharan African nations?," Renewable Energy, Elsevier, vol. 257(C).
    • Handle: RePEc:eee:renene:v:257:y:2026:i:c:s0960148125023675
    DOI: 10.1016/j.renene.2025.124703
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    JEL classification:

    • C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
    • H5 - Public Economics - - National Government Expenditures and Related Policies
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy
    • Q57 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Ecological Economics

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