Determinants of Renewable Energy Growth in Sub-Saharan Africa: Evidence from Panel ARDL

Abstract

Given the importance of renewable energy in the discussion of a reliable and sustainable energy future, it is imperative to understand its main determinants and to draw result implications for energy policy. This study analyses these determinants for Sub-Saharan Africa. Using a panel data technique, namely the panel-ARDL model for a period covering 1990-2014, the results suggest that economic development (per capita GDP) and an increased use of energy aid renewable energy development while population growth impedes it. Furthermore, the study investigates the potentials and current status of renewable energy in Sub-Saharan Africa. This article shows that although the region has great potential for developing renewable energy such as wind, biomass, solar and hydropower, dispersed throughout the continent, this potential has not been fully explored, even though many resources are plentifully available, and evidence good economic potential.