Open Access Journal Article

Impact of Financial Market and Institution Development on Renewable Energy Consumption in Selected Sub-Saharan African Countries: Implications for Sustainable Development

by Sani Abubakar a, b,* ,  Abayomi Awujola a  and  Marvelous Aigbedion a
a
Department of Economics, Bingham University, Karu, Nigeria
b
Research Department, Central Bank of Nigeria, Abuja, Nigeria
*
Author to whom correspondence should be addressed.
ETE  2024 2(3):19; https://doi.org/10.58567/ete02030004
Received: 5 July 2024 / Accepted: 6 November 2024 / Published Online: 7 March 2025
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Abstract

This research is informed by the reality that Sub-Saharan Africa requires new sources of energy for development and sustainability, but with minimum negative effects on the environment. This paper looks at the role played by financial market and financial institutions in the consumption of renewable energy in four Sub-Saharan African countries between 1995 and 2022. According to the IPAT model, we estimate our model through Panel Corrected Standard Errors and Feasible Generalized Least Squares to maintain the robustness of our test. The results reveal a clear divergence: while the financial markets and the financial institutions are both adding to the renewable energy consumption, the later has a greater influence. This implies that financial markets in the current region are relatively inefficient in facilitating the uptake of renewable energy. The findings of this study bear some significant policy implications as follows; policymakers should ensure the soundness of the financial institutions so as to finance the renewable energy investment for sustainable growth in SSA.

Keywords: Financial Development; Renewable Energy; IPAT Equation; Financial Institution;
Copyright: © 2025 by Abubakar, Awujola and Aigbedion. This is an open-access article distributed under the terms of the Creative Commons Attribution License (CC BY) (Creative Commons Attribution 4.0 International License). The use, distribution or reproduction in other forums is permitted, provided the original author(s) or licensor are credited and that the original publication in this journal is cited, in accordance with accepted academic practice. No use, distribution or reproduction is permitted which does not comply with these terms.
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APA Style
Abubakar, S., Awujola, A., & Aigbedion, M. (2024). Impact of Financial Market and Institution Development on Renewable Energy Consumption in Selected Sub-Saharan African Countries: Implications for Sustainable Development. Energy Technologies and Environment, 2(3), 19. doi:10.58567/ete02030004
ACS Style
Abubakar, S.; Awujola, A.; Aigbedion, M. Impact of Financial Market and Institution Development on Renewable Energy Consumption in Selected Sub-Saharan African Countries: Implications for Sustainable Development. Energy Technologies and Environment, 2024, 2, 19. doi:10.58567/ete02030004
AMA Style
Abubakar S, Awujola A, Aigbedion M. Impact of Financial Market and Institution Development on Renewable Energy Consumption in Selected Sub-Saharan African Countries: Implications for Sustainable Development. Energy Technologies and Environment; 2024, 2(3):19. doi:10.58567/ete02030004
Chicago/Turabian Style
Abubakar, Sani; Awujola, Abayomi; Aigbedion, Marvelous 2024. "Impact of Financial Market and Institution Development on Renewable Energy Consumption in Selected Sub-Saharan African Countries: Implications for Sustainable Development" Energy Technologies and Environment 2, no.3:19. doi:10.58567/ete02030004

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ACS Style
Abubakar, S.; Awujola, A.; Aigbedion, M. Impact of Financial Market and Institution Development on Renewable Energy Consumption in Selected Sub-Saharan African Countries: Implications for Sustainable Development. Energy Technologies and Environment, 2024, 2, 19. doi:10.58567/ete02030004
AMA Style
Abubakar S, Awujola A, Aigbedion M. Impact of Financial Market and Institution Development on Renewable Energy Consumption in Selected Sub-Saharan African Countries: Implications for Sustainable Development. Energy Technologies and Environment; 2024, 2(3):19. doi:10.58567/ete02030004
Chicago/Turabian Style
Abubakar, Sani; Awujola, Abayomi; Aigbedion, Marvelous 2024. "Impact of Financial Market and Institution Development on Renewable Energy Consumption in Selected Sub-Saharan African Countries: Implications for Sustainable Development" Energy Technologies and Environment 2, no.3:19. doi:10.58567/ete02030004
APA style
Abubakar, S., Awujola, A., & Aigbedion, M. (2024). Impact of Financial Market and Institution Development on Renewable Energy Consumption in Selected Sub-Saharan African Countries: Implications for Sustainable Development. Energy Technologies and Environment, 2(3), 19. doi:10.58567/ete02030004

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