Analysis of migrant remittances’ effects on energy poverty in Sub-Saharan African countries: a threshold analysis through the role of structural factors

Purpose This study aims to analyze the effects of migrant remittances on energy poverty in Sub-Saharan Africa (SSA), examining both direct effects and the critical, non-linear role played by structural factors financial development and renewable energy investment as threshold conditions. It further investigates the disparities in these effects between urban and rural areas. Design/methodology/approach This research uses panel data from 37 SSA countries from 2005 to 2021. This study uses a bias-corrected method of moments estimator and a dynamic panel threshold model to analyze the non-linear effects of remittances, conditioned by financial development and renewable energy investment. Findings Migrant remittances have a direct, significant effect on reducing energy poverty overall and in both urban and rural areas, with a stronger effect observed in urban settings. Crucially, this study identifies significant threshold effects. Beyond a financial development index threshold of 10.87, remittances have a significantly stronger positive impact on energy access. Similarly, after renewable energy investment surpasses 15.07% of total energy investment, the capacity of remittances to reduce energy poverty is greatly amplified. Originality/value This paper uses a threshold regression framework to demonstrate that the effectiveness of remittances in alleviating energy poverty in SSA is critically dependent on structural factors. It moves beyond linear analysis and introduces investment in renewable energy as a novel transmission channel, providing new insights for policy targeting.