Inequality, finance and renewable energy consumption in Sub-Saharan Africa

Arbeitspapier

The study investigates linkages between financial development, income inequality and renewable energy consumption from 39 countries in Sub-Saharan Africa. The empirical evidence is based on data for the period 2004-2014, Generalized Method of Moments (GMM) and Quantile Regressions (QR). The GMM results show that financial development unconditionally promotes renewable energy consumption while income inequality counteracts the underlying positive effect. The QR results reveal that the GMM findings only withstand empirical validity in bottom quantiles of the renewable energy consumption distribution. In order to increase room for policy implications for the promotion of renewable energy consumption, critical masses of income inequality that should not be exceeded are computed for bottom quantiles of the renewable energy consumption distribution while income inequality thresholds that should be exceeded are computed for top quantiles of the renewable energy consumption distribution. The study reconciles two strands of the literature. Theoretical, practical and policy implications are discussed.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: AGDI Working Paper ; No. WP/20/084

Classification and Topics

• Classification: Wirtschaft ; Structure and Scope of Government: General ; Renewable Resources and Conservation: General ; Nonrenewable Resources and Conservation: General ; Macroeconomic Analyses of Economic Development ; Economywide Country Studies: Africa
• Subject: Renewable energy ; Inequality ; Finance ; Sub-Saharan Africa ; Sustainable development

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Asongu, Simplice ; Odhiambo, Nicholas M.
• Event: Veröffentlichung
• (who): African Governance and Development Institute (AGDI)
• (where): Yaoundé
• (when): 2020

Further information

• Handle: http://hdl.handle.net/10419/228061
• Last update: 10.03.2025, 11:45 AM CET