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Investigating the modern renewable energy-environmental Kuznets curve (REKC) hypothesis for East Africa Community (EAC) countries

Author

Listed:
  • Jennifer Nabaweesi
  • Twaha Kaawaase Kigongo
  • Faisal Buyinza
  • Muyiwa S. Adaramola
  • Sheila Namagembe
  • Isaac Nabeta Nkote

Abstract

Purpose - The study aims to explore the validity of the modern renewable energy-environmental Kuznets curve (REKC) while considering the relevance of financial development in the consumption of modern renewable energy in East Africa Community (EAC). Modern renewable energy in this study includes all other forms of renewable energy except traditional use of biomass. The authors controlled for the effects of urbanization, governance, foreign direct investment (FDI) and trade openness. Design/methodology/approach - Panel data of the five EAC countries of Burundi, Kenya, Rwanda, Tanzania and Uganda for the period 1996–2019 were used. The analysis relied on the use of the autoregressive distributed lag–pooled mean group (ARDL-PMG) model, and the data were sourced from the World Development Indicators (WDI), World Governance Indicators (WGI) and International Energy Agency (IEA). Findings - The REKC hypothesis is supported for modern renewable energy consumption in the EAC region. Financial development positively and significantly affects modern renewable energy consumption, whereas urbanization, FDI and trade openness reduce modern renewable energy consumption. Governance is insignificant. Originality/value - The concept of the REKC, although explored in other contexts such as aggregate renewable energy and in other regions, has not been used to explain the consumption of modern renewable energy in the EAC.

Suggested Citation

  • Jennifer Nabaweesi & Twaha Kaawaase Kigongo & Faisal Buyinza & Muyiwa S. Adaramola & Sheila Namagembe & Isaac Nabeta Nkote, 2023. "Investigating the modern renewable energy-environmental Kuznets curve (REKC) hypothesis for East Africa Community (EAC) countries," Technological Sustainability, Emerald Group Publishing Limited, vol. 3(1), pages 76-95, November.
    • Handle: RePEc:eme:techsp:techs-09-2023-0037
    DOI: 10.1108/TECHS-09-2023-0037
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