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Renewable energy technologies provide an opportunity for sub-Saharan Africa countries to reduce energy poverty, achieve energy security and economic growth. This paper examined the relationship between financial development and renewable energy development using data from 17 selected sub-Saharan Africa countries for a 17-year period from 2000 to 20...
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Major new opportunities abound from energy integration among regions in Africa with the sole aim of reducing transaction costs and with the role of Information Communication Technology (ICT), it would take energy from where it is easily affordable to places where it is needed. Given the hullabaloo over the net energy-saving impact of ICT, this stud...
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... The existing literature on the interconnections among renewable energy, financial development, and natural resources presents varied findings. Concerning the nexus between renewable energy and financial development, a body of research suggests that robust financial institutions catalyze investments in the renewable energy sector by channeling capital toward highgrowth potential areas (Brunnschweiler, 2010;Chireshe, 2021;Sweerts et al. 2019;Wu and Broadstock, 2015). Beyond direct investment facilitation, financial development may also indirectly bolster renewable energy usage by spurring economic growth. ...
This study examines the complex interplay between financial development, natural resources, and renewable energy consumption in Sub-Saharan Africa from 2000 to 2020, highlighting the pivotal role of financial strategies in enhancing sustainable energy practices. Employing an array of analytical techniques, including panel-corrected standard errors (PCSE), fixed effects, random effects models, and panel-fixed quantile regression, we delve into the nuanced relationships among these critical variables. The findings reveal that while natural resources and financial development generally exert negative impacts on renewable energy consumption when considered in isolation, a significant transformation occurs when these factors interact. Specifically, the detrimental effects of natural resources on renewable energy usage are substantially mitigated by robust financial development, which not only offsets the negative impacts but also promotes renewable energy adoption. This interaction points to a synergistic relationship where strategic financial development can leverage natural resources for progressive energy outcomes. Such insights underscore the necessity of well-coordinated financial policies and resource management to foster green growth in Sub-Saharan Africa, demonstrating the urgent need for integrated approaches to achieve sustainability in the region. This research not only clarifies the dynamics of financial and natural resource interdependencies but also motivates significant policy implications for enhancing renewable energy landscapes in developing economies.
... However, our results diverge from Chireshe (2020) and Asemota &Olokoyo (2022) by revealing a negative ETR coefficient, potentially attributable to higher energy taxes dampening GBI incentives in the German context. We concur with Lam & Law (2016) and Mngumi et al. (2022) regarding crowdfunding and infrastructure financing as complementary policy instruments. ...
This study examines the interplay between environmental tax revenue, renewable energy consumption, and sustainable exports in shaping Germany's green bond market from 2010 to 2022. Employing Quantile Regression, the research analyzes causal relationships and differential impacts across varying quantiles of the green bond market. Findings reveal that renewable energy consumption significantly boosts green bond issuance, while environmental tax revenues present a diminishing negative effect, suggesting targeted alleviations could enhance synergies. Furthermore, exports demonstrate decreasing adverse impacts, highlighting resilience. This research, the first German-specific econometric study in this domain, provides novel insights into the causal mechanisms of green finance flows. It underscores the complex interdependencies within the green finance ecosystem and offers valuable perspectives for policy-making in Germany's transition towards environmental sustainability. The study's methodology and insights contribute substantially to the academic discourse on green finance, guiding future research and policy strategies in this field.
... The impact of renewable energy consumption on economic growth in African countries is a subject of empirical analysis, revealing varying effects across regions . Additionally, the relationship between financial development and renewable energy development in Sub-Saharan Africa has been examined, indicating the importance of finance in driving renewable energy initiatives (Chireshe, 2020). In South Africa, the Renewable Energy Independent Power Producers Procurement Programme is designed to reduce carbon emissions, emphasizing the role of policy and regulations in promoting renewable energy . ...
This paper provides a concise overview of the comprehensive examination undertaken to assess climate finance strategies associated with renewable energy projects in Africa. The continent, endowed with abundant renewable resources, faces the dual challenge of meeting its rising energy demand while addressing climate change concerns. This review delves into the diverse landscape of renewable energy initiatives across Africa, emphasizing the pivotal role of climate finance mechanisms in driving sustainable development. The study explores a myriad of renewable energy projects, encompassing solar, wind, hydro, and geothermal technologies, implemented to mitigate the environmental impact of conventional energy sources. It investigates the financial instruments deployed to support these projects, including international funds, grants, loans, and public-private partnerships. The analysis considers the effectiveness of climate finance in fostering the adoption and scaling-up of renewable energy solutions within the unique socio-economic contexts of African nations. Furthermore, the research investigates challenges and opportunities associated with climate finance strategies in the African renewable energy sector. Common barriers, such as regulatory frameworks, institutional capacity, and market dynamics, are examined, alongside success stories that highlight innovative financing models and project implementations. The study also sheds light on the role of regional collaborations and the involvement of local communities in ensuring the sustainability and resilience of renewable energy projects. In addition, the review critically assesses the alignment of climate finance strategies with international climate goals, including the Paris Agreement. It analyzes the extent to which these strategies contribute to both mitigating greenhouse gas emissions and promoting adaptation measures in the face of climate change impacts. The findings aim to provide policymakers, investors, and stakeholders with valuable insights into refining and enhancing climate finance strategies for a more impactful and inclusive renewable energy transition in Africa. This review synthesizes a comprehensive understanding of the current state of renewable energy projects in Africa, emphasizing the critical role played by climate finance in advancing sustainable development. The insights generated from this analysis contribute to the ongoing discourse on effective climate finance strategies, offering a roadmap for fostering resilient and low-carbon energy systems on the African continent.
... Financial development in this study is measured by liquid liabilities as a percent of GDP, credit to the private sector as a percent of GDP, and market capitalization as a percent of GDP (24). In the case of African economies, Chireshe (25) found that financial development increases life expectancy and reduces the child mortality rate. Gyasi et al. (15) explored the impact of financial inclusion on adult health in the case of Ghana. ...
Asian countries have shown remarkable progress in financial inclusion and have become the world's fastest-growing regions. However, the financial inclusion-human health nexus has not received much attention. This study contributes to the empirical literature by examining the effect of financial inclusion on population health using panel data from Asian countries from 2007 to 2019. Population health is measured by death rate and life expectancy at birth. Our study finding shows that digital financial inclusion increases life expectancy but decreases the death rate in Asia. At the same time, financial inclusion positively impacts life expectancy and has a negative impact on the death rate in Asia. Finding also suggests that Internet users, GDP, and FDI have improved population health by increasing life expectancy and decreasing the death rate. The results suggest some essential policy implications.
... Atsu and Adams [13] studied the long-term relationship between energy consumption, financial development, and economic uncertainty in BRICs countries and found that policy uncertainty increases carbon dioxide emissions, while financial development will reduce carbon dioxide emissions. Chireshe [14] studied the data of South African countries from 2000 to 2016, proving that financial development can effectively improve the utilization rate of renewable energy. It is necessary to strengthen the financial development of each country to cope with the increasingly severe environmental problems. ...
This paper studies the impact of the development of green finance on China’s energy consumption structure. 17 basic indexes and the improved entropy weight method are used to construct the green finance index (GFI). Multiple regression, panel regression, and spatial regression are used to study the impact of green finance on China’s traditional energy and renewable energy consumption. The results show that there is a positive spatial spillover effect in the development of green finance among provinces in China. The development of green finance contributes to the conversion of traditional to renewable energy consumption. The effect of green finance on the transformation of energy consumption structure is mainly reflected in the direct effect. The green finance in each province not only helps the local development of green energy but also plays a good role in the production and utilization of clean energy consumption in surrounding provinces. Therefore, the government should support the green finance, reduce traditional energy consumption, and increase renewable energy consumption.
A transition from conventional energy sources to renewable energy (RE) sources remains an important concern of the present world. This transition, however, largely depends upon financial sources required for start-up investments, operating costs, and advanced infrastructure. However, an important question arises as to what is the threshold level of financial development (FD) that can boost RE consumption. To answer this, the present study empirically investigates the relationship between FD and RE consumption considering the nonlinear effects of FD. The study used broad money, domestic credit to the private sector, and domestic credit to the private sector by banks as proxy variables of FD from 1970 to 2020 at a global level of 173 countries. The study employed the econometric techniques of pooled OLS method, fixed effects, random effects, and Driscoll and Kraay regression. Additionally, the dynamic panel threshold technique is utilized to obtain the threshold value of FD for robust and reliable analysis. The analysis confirmed the presence of a U-shaped association between FD and RE consumption. The results suggest that all measures of FD boost RE consumption after reaching a certain threshold level of FD. Moreover, economic growth, urbanization, industrialization, and trade showed a significant impact on RE consumption. The study offers unique insights on threshold values of alternative measures of FD for environmental policy designs.
