Fostering energy transition in Africa: Financial systems, inclusive growth, corruption control and ICT as catalysts

This study examines the dynamic interplay between financial markets and institutions access and depth, corruption control, inclusive growth, and ICT diffusion in promoting renewable energy consumption and clean cooking fuel technologies. Data were collected from World Development Indicators, the Uni...

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Main Authors: Louis David Junior Annor, Thomas Kyei-Mensah, John Agyekum Addae, Margarita Robaina, Elisabete Vieira
Format: Article
Language:English
Published: Taylor & Francis Group 2025-12-01
Series:Sustainable Environment
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Online Access:https://www.tandfonline.com/doi/10.1080/27658511.2025.2518791
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author Louis David Junior Annor
Thomas Kyei-Mensah
John Agyekum Addae
Margarita Robaina
Elisabete Vieira
author_facet Louis David Junior Annor
Thomas Kyei-Mensah
John Agyekum Addae
Margarita Robaina
Elisabete Vieira
author_sort Louis David Junior Annor
collection DOAJ
description This study examines the dynamic interplay between financial markets and institutions access and depth, corruption control, inclusive growth, and ICT diffusion in promoting renewable energy consumption and clean cooking fuel technologies. Data were collected from World Development Indicators, the United Nations Development Programme, World Governance Indicators and the International Monetary Fund for 15 West African economies from 1996 to 2021. Using feasible generalized least squares (FGLS) as the primary estimator and panel-corrected standard errors (PCSE) for the sensitivity test, this study found that access and depth in financial markets drive up the use of renewable energy. Similarly, the depth and accessibility of financial institutions enhance this beneficial impact. Interestingly, we discovered that corruption control had two effects on renewable energy: negative direct effects on renewable energy consumption and positive moderating effects on the link between financial systems and green energy use. Inclusive growth negatively impacts renewable energy, but corruption control mitigates this negative effect. Inclusive growth, directly and indirectly, improves clean cooking fuel technology via corruption control. This study provides crucial insights for policymakers to address governance challenges, optimize financial market structures, and harness inclusive growth to augment renewable energy and clean cooking fuel technologies in West Africa.
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publishDate 2025-12-01
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series Sustainable Environment
spelling doaj-art-5010c817c14d4f9d8e0e6078fbd7b1932025-08-20T03:31:20ZengTaylor & Francis GroupSustainable Environment2765-85112025-12-0111110.1080/27658511.2025.2518791Fostering energy transition in Africa: Financial systems, inclusive growth, corruption control and ICT as catalystsLouis David Junior Annor0Thomas Kyei-Mensah1John Agyekum Addae2Margarita Robaina3Elisabete Vieira4Department of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, Aveiro, PortugalSchool of Management, Anglia Ruskin University, Cambridge, UKDepartment of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, Aveiro, PortugalDepartment of Economics, Management, Industrial Engineering and Tourism, University of Aveiro, Aveiro, PortugalResearch Unit on Governance, Competitiveness and Public Policies (GOVCOPP), University of Aveiro, Aveiro, PortugalThis study examines the dynamic interplay between financial markets and institutions access and depth, corruption control, inclusive growth, and ICT diffusion in promoting renewable energy consumption and clean cooking fuel technologies. Data were collected from World Development Indicators, the United Nations Development Programme, World Governance Indicators and the International Monetary Fund for 15 West African economies from 1996 to 2021. Using feasible generalized least squares (FGLS) as the primary estimator and panel-corrected standard errors (PCSE) for the sensitivity test, this study found that access and depth in financial markets drive up the use of renewable energy. Similarly, the depth and accessibility of financial institutions enhance this beneficial impact. Interestingly, we discovered that corruption control had two effects on renewable energy: negative direct effects on renewable energy consumption and positive moderating effects on the link between financial systems and green energy use. Inclusive growth negatively impacts renewable energy, but corruption control mitigates this negative effect. Inclusive growth, directly and indirectly, improves clean cooking fuel technology via corruption control. This study provides crucial insights for policymakers to address governance challenges, optimize financial market structures, and harness inclusive growth to augment renewable energy and clean cooking fuel technologies in West Africa.https://www.tandfonline.com/doi/10.1080/27658511.2025.2518791Renewable energy consumptionAfricaPCSEfinancial developmentInclusive growthFGLS
spellingShingle Louis David Junior Annor
Thomas Kyei-Mensah
John Agyekum Addae
Margarita Robaina
Elisabete Vieira
Fostering energy transition in Africa: Financial systems, inclusive growth, corruption control and ICT as catalysts
Sustainable Environment
Renewable energy consumption
Africa
PCSE
financial development
Inclusive growth
FGLS
title Fostering energy transition in Africa: Financial systems, inclusive growth, corruption control and ICT as catalysts
title_full Fostering energy transition in Africa: Financial systems, inclusive growth, corruption control and ICT as catalysts
title_fullStr Fostering energy transition in Africa: Financial systems, inclusive growth, corruption control and ICT as catalysts
title_full_unstemmed Fostering energy transition in Africa: Financial systems, inclusive growth, corruption control and ICT as catalysts
title_short Fostering energy transition in Africa: Financial systems, inclusive growth, corruption control and ICT as catalysts
title_sort fostering energy transition in africa financial systems inclusive growth corruption control and ict as catalysts
topic Renewable energy consumption
Africa
PCSE
financial development
Inclusive growth
FGLS
url https://www.tandfonline.com/doi/10.1080/27658511.2025.2518791
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AT johnagyekumaddae fosteringenergytransitioninafricafinancialsystemsinclusivegrowthcorruptioncontrolandictascatalysts
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