Renewable Energy and Ecological Sustainability in Africa: Does Foreign Debt and Financial Globalisation Matter?

Since the last decade, ecological preservation has become a critically debated topic in developing and developed nations. Hence, to ensure environmental sustainability, countries and international bodies have canvassed for measures that support severe restrictions to protect the Earth's biodiversity. This study's objectives were two-fold: the sole effect of renewable energy on ecological sustainability and second, identify the impacts of external debt and financial globalisation in the renewable energy-ecological sustainability nexus, both within the Environmental Kuznet Curve (EKC) framework for 44 African economies. Second-generation estimation techniques were employed and deduced inferences from the cross-sectional autoregressive distributed lag method used in the study. The study empirically demonstrated that renewable energy is insignificant for ecological sustainability without debt stock and financial globalisation. However, the inclusion of both variables revealed that while renewable energy and financial globalisation accelerated ecological sustainability, external debt worsened it in the short and long-term periods. Therefore, the study proposed amongst others that for the productive benefits of renewable energy use to human and environmental well-being, policymakers must execute clean energy portfolios by restricting brown energy use. This measure will require considering introducing a significant amount of carbon tax or emission permit and incentivising businesses to adopt green technologies.

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Publication Details

Journal
Energy Technologies and Environment
Published
2025-03-15
DOI
https://doi.org/10.58567/ete03010001
Citations
5
Primary Topic
Energy, Environment, Economic Growth
Type
article
Field-Weighted Citation Impact
15.66
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article

Renewable Energy and Ecological Sustainability in Africa: Does Foreign Debt and Financial Globalisation Matter?

Magaji Ibrahim Yakubu, Samson Adeniyi Aladejare
5 citations
Energy Technologies and Environment
Energy, Environment, Economic Growth
15.66
article

Renewable Energy and Ecological Sustainability in Africa: Does Foreign Debt and Financial Globalisation Matter?

Magaji Ibrahim Yakubu, Samson Adeniyi Aladejare
article en
5 citations

Abstract

Since the last decade, ecological preservation has become a critically debated topic in developing and developed nations. Hence, to ensure environmental sustainability, countries and international bodies have canvassed for measures that support severe restrictions to protect the Earth's biodiversity. This study's objectives were two-fold: the sole effect of renewable energy on ecological sustainability and second, identify the impacts of external debt and financial globalisation in the renewable energy-ecological sustainability nexus, both within the Environmental Kuznet Curve (EKC) framework for 44 African economies. Second-generation estimation techniques were employed and deduced inferences from the cross-sectional autoregressive distributed lag method used in the study. The study empirically demonstrated that renewable energy is insignificant for ecological sustainability without debt stock and financial globalisation. However, the inclusion of both variables revealed that while renewable energy and financial globalisation accelerated ecological sustainability, external debt worsened it in the short and long-term periods. Therefore, the study proposed amongst others that for the productive benefits of renewable energy use to human and environmental well-being, policymakers must execute clean energy portfolios by restricting brown energy use. This measure will require considering introducing a significant amount of carbon tax or emission permit and incentivising businesses to adopt green technologies.

Energy Technologies and EnvironmentVol. 3(1)
Federal University Lafia (NG), Federal University Wukari
Openalex Percentile: Top 2%
Energy, Environment, Economic Growth
15.66
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