Effect of renewable energy consumption on multidimensional poverty in Sub-Saharan Africa

Purpose This paper analyses the effect of renewable energy (RE) consumption on multidimensional poverty in Sub-Saharan Africa. Design/methodology/approach The finite mixture model (FMM), which accounts for the specificities of each country in terms of multidimensional poverty and RE consumption by classifying them into regimes, is used on data in 37 Sub-Saharan African countries over the period 2000–2021. Findings The results show that RE consumption reduces multidimensional poverty in countries in regimes 1 and 3, while it exacerbates multidimensional poverty in countries in regime 2. This unexpected effect in regime 2 countries is explained by the high cost of energy in this group of nations. Practical implications These findings suggest the adoption of differentiated energy policies. For countries where increased RE consumption reduces poverty (regimes 1 and 3), the focus should be on infrastructure investment and expanding energy access. Conversely, for countries where RE can exacerbate poverty (regime 2), policies must prioritize cost management, energy efficiency and ensure that energy directly benefits the most vulnerable populations. Originality/value The effect of renewable energy consumption on multidimensional poverty has received little or no attention in the economic literature. This article fills the gap in the economic literature by analyzing this in Sub-Saharan African countries.