Renewable Energy Consumption, Financial Inclusion and Environmental Sustainability in Sub-Saharan Africa

This study aims to enrich the existing literature on the importance of renewable energy by exploring how financial inclusion can moderate the impact of renewable energy consumption on environmental sustainability. The focus is on 26 sub-Saharan African nations for the period 2004 to 2022, and the empirical evidence is based on interactive fixed effects and quantile regressions. The following results were established. First, financial inclusion, measured by the number of users of automated teller machines (ATMs) and commercial bank branches, moderates renewable energy consumption to have an overall negative effect on carbon dioxide emissions. Second, overall financial inclusion moderates the consumption of renewable energy to generate an overall negative effect on carbon dioxide emissions in sub-Saharan African countries with medium and high pollution levels. Political implications are discussed. The study complements the extant literature by examining how inclusive finance can be relevant in assessing how renewable energy affects the sustainability of the environment.