DETERMINANTS OF GREEN GROWTH IN SUB-SAHARAN AFRICA: A Quantile Regression Analysis of Renewable Energy, FDI, and Urbanization
- Mohamed Zakaria Fodol
- Anwar Adem Shikur
- Hakan Aslan
- ( paper pages. 311 - 340 )
Abstract
This study investigates the determinants of green growth
(GG) in 14 sub-Saharan African countries from 1990 to 2020, focusing on
renewable energy consumption, foreign direct investment (FDI), urbanization,
population size, GDP per capita, and forest area. Using a range of econometric
techniques, including pooled OLS, fixed effects, LSDVs, Driscoll-Kraay standard
errors, and Method of Moments Quantile Regression (MM-QR), the study captures
both the average and distributional effects of these factors on GG, proxied by
energy-related CO₂ emissions per capita. The findings indicate that renewable
energy consumption is positively associated with emissions, reflecting
transitional energy systems where clean energy complements rather than
substitutes for fossil fuel use. Foreign direct investment tends to reduce
emissions, particularly in higher emission contexts, suggesting that green
investment plays a key role in mitigation. Urbanization and population show
mixed impacts, while GDP per capita consistently correlates with higher
emissions, underscoring the growth–environment trade-off. Forest cover
significantly mitigated emissions across all quantiles. This study calls for
integrated policies that expand renewable infrastructure, attract green FDI,
and prioritize forest conservation and sustainable urban planning.
Citation
Mohamed Zakaria Fodol, Anwar Adem Shikur, Hakan Aslan.
2025.
"DETERMINANTS OF GREEN GROWTH IN SUB-SAHARAN AFRICA: A Quantile Regression Analysis of Renewable Energy, FDI, and Urbanization"
The Nigerian Journal of Economic and Social Studies,
67 (2): 311 - 340.
JEL Classification
Q56, Q43, F21, O13
