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The Role of Green Innovation, Renewable Energy, and Institutional Quality in Promoting Green Growth: Evidence from African Countries

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  • Derese Kebede Teklie

    (Department of Economics, School of Management, Istanbul Technical University, Maçka, 34367 İstanbul, Türkiye)

  • Mete Han Yağmur

    (Department of Economics, School of Management, Istanbul Technical University, Maçka, 34367 İstanbul, Türkiye)

Abstract

Green growth exhibits an immense potential to transform economies and safeguard the planet as it creates a symbiotic relationship between economic progress and environmental protection. This study examines the impact of green innovation, renewable energy consumption, and institutional quality on green growth in African countries, controlling for GDP per capita, trade openness, foreign direct investment (FDI), population, and natural resource rent. The short- and long-run relationships are investigated using pooled mean group (PMG), mean group (MG), and dynamic fixed effects (DFE) models with panel data for 49 African countries from 2000 to 2021. The findings reveal that green innovation, renewable energy consumption, institutional quality, GDP per capita, trade openness, and population growth have positive long-run effects on green growth. In contrast, FDI and natural resource depletion have adverse effects. In the short run, only institutional quality and GDP per capita positively affect green growth, while natural resource rent has a negative impact. Considering these findings, this study recommends that policymakers in Africa promote green innovation and adopt energy-efficient technologies, increase the use of renewable energy resources, and improve institutional quality to achieve green growth.

Suggested Citation

  • Derese Kebede Teklie & Mete Han Yağmur, 2024. "The Role of Green Innovation, Renewable Energy, and Institutional Quality in Promoting Green Growth: Evidence from African Countries," Sustainability, MDPI, vol. 16(14), pages 1-23, July.
    • Handle: RePEc:gam:jsusta:v:16:y:2024:i:14:p:6166-:d:1438141
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    2. Shang Chen & Yuanhe Du & Yeye Liu, 2025. "Regional Integration and Urban Green and Low-Carbon Development: A Quasi-Natural Experiment Based on the Expansion of the Yangtze River Delta Urban Agglomeration," Sustainability, MDPI, vol. 17(8), pages 1-34, April.

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