Renewable Energy Consumption and Economic Well-being: Insights from Sub-Saharan Africa

Background: Aligned with the United Nations' Sustainable Development Goal 7, this study examines the effect of renewable energy consumption on economic well-being across 42 Sub-Saharan African (SSA) countries from 2009 to 2021. Methods: Using econometric techniques, including Ordinary Least Squares, Driscoll and Kraay, and the two-step system Generalized Method of Moments, the study analyzes the role of renewable energy in reducing unemployment and enhancing economic fitness, industrialization, and financial development. Robustness checks incorporate control variables (health expenditure, FDI) and alternative measures such as GDP per capita growth. Results: Renewable energy use reduces unemployment and significantly improves economic fitness, industrialization, and financial development. Health expenditure and FDI further enhance economic outcomes, while inflation negatively affects them. Population growth consistently boosts all economic well-being indicators. The results remain robust when GDP per capita growth is used as an alternative proxy. Conclusion: Policymakers in SSA should prioritize renewable energy investments, strengthen health systems, attract foreign capital, and implement inflation-control measures to support sustainable economic development.