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On the asymmetric effects of economic policy uncertainty on renewable energy consumption: insights from sub-Saharan African countries

Author

Listed:
  • Jimoh Sina Ogede

    (Olabisi Onabanjo University)

  • Adedamola Akeem Siyanbola

    (Olabisi Onabanjo University)

  • Soliu Bidemi Adegboyega

    (Olabisi Onabanjo University)

  • Olayinka Esther Atoyebi

    (Olabisi Onabanjo University)

Abstract

This study looks at the relationship between renewable energy use and asymmetric economic policy uncertainty in sub-Saharan African (SSA) nations from 2000 to 2019. The panel causality model by Dumitrescu and Hurlin (DH) is combined with the Autoregressive Distributed Lag model. EPU is associated with a negative long-term impact but not a negative immediate impact on the usage of renewable energy in SSA countries. EPU changes have no long-term effects, either good or bad, on the utilization of renewable energy. On the other hand, the short-term effect of the negative change in EPU on the use of renewable energy in SSA countries is negligible. Particularly evident in the long and short terms is the detrimental impact that income level has on the utilization of renewable energy. The use of renewable energy is affected both long term and short term by financial growth and foreign direct investment. The EPU, foreign direct investment, the usage of renewable energy, and negative EPU are all connected in both directions, according to the causality conclusions of the DH panel. Reorienting energy policies is necessary as a result of the findings regarding economic policy uncertainty and renewable energy.

Suggested Citation

  • Jimoh Sina Ogede & Adedamola Akeem Siyanbola & Soliu Bidemi Adegboyega & Olayinka Esther Atoyebi, 2023. "On the asymmetric effects of economic policy uncertainty on renewable energy consumption: insights from sub-Saharan African countries," SN Business & Economics, Springer, vol. 3(10), pages 1-19, October.
    • Handle: RePEc:spr:snbeco:v:3:y:2023:i:10:d:10.1007_s43546-023-00563-9
    DOI: 10.1007/s43546-023-00563-9
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