Harmonizing renewable energy and economic growth in Sub-Saharan Africa: the transformative potential of ICT

Abstract

Despite the positive impact that renewable energy can offer its development is not necessarily and widely implemented by countries. It is against this backdrop this study investigates whether renewable energy contribute to economic growth in sub-Saharan Africa (SSA) between the periods 2005–2022. The study accounted for the role of information communication technology and globalization in stimulating economic growth. For empirical analysis, this study adopted Pooled Mean Group (PMG) Autoregressive Distributed Lag Model approach and other batteries of techniques for robustness testing. It was observed that both renewable energy and information communication technology (ICT) indicate a negative and significant impact on economic growth in the long run. The study further established a positive and significant impact of globalization and economic growth in the long run. This indicates the vital role of ICT and globalization in accelerating economic growth. In terms of policy suggestions, this study believes that infrastructural development, incentives among others could make renewable energy more affordable and attractive for private sector participation. There is also the need to provide research funding to develop home-produced technology to improve energy supply in the region, particularly in rural areas.

Keywords

Renewable energy ,Economic growth ,SSA ,PMG ,Panel data