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Globalization, Institutional Quality, and Climate Change in Africa: Analyzing the Threshold Effect of Energy Transition

In: Climate Change in Africa

Author

Listed:
  • Wassiuw Abdul Rahaman

    (University of Ghana, Department of Economics)

  • Mohammed Amidu

    (University of Ghana Business School)

  • William Coffie

    (University of Ghana Business School)

  • Moses Dunyoh

    (University of Ghana Business School)

Abstract

The complex interplay between globalization, institutional quality, and climate change in Africa remains poorly understood, particularly in the context of energy transition. This chapter investigates the relationships among these variables, focusing on the threshold effect of energy transition. Using panel data from 20 African countries over a 32-year period (1990–2021), we employ a non-linear dynamic panel threshold regression model to explore how energy transition thresholds moderate the impacts of globalization and institutional quality on climate change outcomes. Our results suggest a significant threshold effect of energy transition. Below an identified threshold of 87.8, the effects of globalization and institutional quality on climate change mitigation appear limited. However, above this threshold, their impacts seem to become more pronounced. Our findings suggest that energy transition may be necessary for African countries to effectively leverage globalization and institutional improvements in addressing climate change. Thus, the chapter contributes to understanding sustainable development dynamics in Africa, offering insights for policymakers on optimizing climate change strategies amidst varying levels of global integration and institutional capacity.

Suggested Citation

  • Wassiuw Abdul Rahaman & Mohammed Amidu & William Coffie & Moses Dunyoh, 2026. "Globalization, Institutional Quality, and Climate Change in Africa: Analyzing the Threshold Effect of Energy Transition," Advances in African Economic, Social and Political Development, in: Mohammed Amidu & Albert Ahenkan & Edward Asiedu (ed.), Climate Change in Africa, pages 117-151, Springer.
    • Handle: RePEc:spr:aaechp:978-3-032-15259-6_6
    DOI: 10.1007/978-3-032-15259-6_6
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