Navigating the green frontier: The role of employment dynamics and natural capital in renewable energy consumption in Africa

Africa's sustainability aspirations primarily rely on the region's capacity to shift from traditional fuel usage to green energy, a transition critical for attaining sustainable development. Notwithstanding Africa's massive potential for clean energy, the region continues to be regarded as one of the world's most energy-deprived regions. In light of the paradox of enormous resources but poor energy access, comprehending the major drivers of sustainable energy utilization becomes vital for aiding robust decarbonization strategies. This study investigates the impact of sectoral employment, employment status and natural wealth on renewable energy adoption in sub-Saharan Africa between 1991 and 2022. The study also assesses the interaction effect between employment and natural resource rents on renewable energy adoption in Africa. Employing the PCSE approach, the study found that natural resource rents positively influence renewable energy adoption. Employment in the industrial sector and wage employment negatively impact renewable energy consumption. In contrast, employment in agriculture and services and self-employment spur green energy development. The interaction between employment dynamics and natural resources affects clean energy utilization differently. In light of established findings, our study offers several policy suggestions to boost the development and uptake of sustainable energy across the region, aiming to leverage the region's huge clean energy potential while tackling its urgent energy issues.