The purpose of this study is to analyze the impact of energy development on industrialization in African economies from 1990 to 2017. It aims to assess how access to electricity…
Abstract
Purpose
The purpose of this study is to analyze the impact of energy development on industrialization in African economies from 1990 to 2017. It aims to assess how access to electricity, energy use and overall energy development contribute to industrial growth. By using panel data analysis and advanced econometric techniques such as fixed effects, two-stage least squares (2SLS) and system-GMM estimation, this study seeks to provide empirical evidence and insights into the complex dynamics between energy policies and industrialization outcomes. The findings are intended to inform policymakers and stakeholders on effective strategies to promote sustainable industrial development in the region.
Design/methodology/approach
This study uses a quantitative approach using panel data analysis spanning 1990–2017 from various sources. It uses fixed effects, 2SLS and system-GMM estimation methods to investigate the nuanced relationship between energy development and industrialization in African economies. This comprehensive methodology facilitates a robust examination of how different dimensions of energy development influence industrialization outcomes, aiming to fill gaps in existing literature and provide insights for policy formulation and implementation.
Findings
The findings reveal that energy development significantly enhances industrialization in African economies. Access to electricity and energy use both positively impact industrial growth, with access to electricity showing a stronger influence. This study underscores the critical role of energy infrastructure in fostering industrial expansion and economic development. Moreover, robust econometric methods confirm these relationships across various specifications, highlighting the importance of tailored energy policies to sustain industrialization efforts in Africa. These findings contribute empirical insights to the literature and provide actionable recommendations for policymakers aiming to enhance energy access and promote sustainable industrial development in the region.
Originality/value
This study contributes to the literature by offering new insights into the relationship between energy development and industrialization in African economies. By using advanced econometric techniques and focusing on nuanced dimensions of energy access and use, it addresses gaps in previous research. The findings underscore the significance of energy infrastructure for industrial growth, highlighting policy implications for sustainable development in Africa. This research adds value by providing empirical evidence that informs strategies to enhance energy efficiency, expand access to electricity and promote industrialization, thus contributing to broader discussions on economic development and energy policy in the region.
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This chapter provides an overview of the current status of renewable energy projects and identifies the key success factors of well-performing public–private partnerships (PPPs)…
Abstract
This chapter provides an overview of the current status of renewable energy projects and identifies the key success factors of well-performing public–private partnerships (PPPs). To this end, this study analyses around 1,700 renewable projects on the World Bank’s Private Participation in Renewable Energy (PPRE) database. We then follow an inductive approach for a case review and examine a 5-MW rooftop solar PPP in Gujarat, India, that had been implemented in 2012. In spite of the rapid growth of renewable PPPs, regional disparity is distinct and most PPPs have been undertaken in Latin America and the Caribbean or a few selective countries such as China or South Africa. The case study informs that the successful PPPs may be attributed to such factors as policy coordination in multi-governance systems to attract project investments, the handling of land constraints in a project planning stage, and Green Incentive given to project participants. It offers a valuable insight into the significance of well-designed PPPs for enhanced energy access in developing countries, while accelerating the global transition to renewable-based energy supply to promote sustainable development.
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Aondoyila Kuhe and Danladi Yusufu Bisu
This paper aims to present a systematic scoping review of the influences of some situational factors on the energy consumption behaviour of households. Household’s energy choice…
Abstract
Purpose
This paper aims to present a systematic scoping review of the influences of some situational factors on the energy consumption behaviour of households. Household’s energy choice and manner of utilization define its energy consumption behaviour; it is a key factor in determining the energy efficiency of households. Despite the energy-efficient technological innovations and awareness on environmental/health implications of using certain energy sources and technologies, households still use inefficient, traditional energy sources and technologies. Some researchers have attempted to use economic and psychological theories to explain the situation with the hope of achieving a change in behaviour towards sustainable energy utilization but to no avail. This is because the theories fail to consider situations beyond individuals or households. A clear understanding of situational factors and how they influence household energy behaviour will provide information that will aid deeper research and policy formulation towards sustainable energy behaviour of households.
Design/methodology/approach
A scoping systematic review of available literature regarding real-life cases in both developed and developing countries was carried out to determine the possibility of situational factors affecting household energy choices and utilization.
Findings
The result of the review showed that situational factors have a significant influence on household’s energy consumption. The main policy implications observed are the need for laws that will encourage energy-saving renovations in houses, make compulsory the provision of recreational facilities in residential areas to reduce in-home energy consumption. The need for increased access to electricity and other efficient energy sources and cooking technologies has also been observed. Intensive awareness campaigns are required to disabuse the minds of people about cultural issues that mitigate improved cook stove adoption.
Originality/value
The paper provides information on the influence of some of the factors, which affect energy consumption in households, which fluctuate depending on the current situation of the consumer and are time-bound (situational factors). The information will help policymakers and regulators to understand the influence of situational factors on household energy consumption, thereby enabling them to make policies that will enhance sustainable energy consumption.
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Edward M. Mungai, S. Wagura Ndiritu and Tazeeb Rajwani
This study aims to investigate the drivers for adopting energy efficiency practices within an emerging market context.
Abstract
Purpose
This study aims to investigate the drivers for adopting energy efficiency practices within an emerging market context.
Design/methodology/approach
Drawing on the shared value theoretical perspective, this study investigates the corporate strategy approaches toward energy efficiency in firms. This paper draws from a sample of 852 Kenyan firms from 14 sectors. This study’s analysis is based on an ordered probit model.
Findings
The findings indicate that companies that conduct energy audits, have environmental performance-based compensation for senior management, provide staff training on energy efficiency and have a written energy policy are more effective in energy efficiency and conservation efforts. Based on the findings, this study recommends that companies and policymakers incentivize corporate actions and strategies to promote energy efficiency. While this study’s findings offer critical insights, the authors recommend future research to make sectorial comparisons.
Originality/value
Studies focusing on drivers of energy efficiency are limited, and those that exist are often either qualitative or focused on large, listed firms. By investigating 852 companies in 14 sectors in Kenya, this study adds to the literature on firms’ energy efficiency management.
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Parimita Mohanty, Indrajit Pal and Joyashree Roy
The analytical framework proposed in this study aims to link the capital portfolio approach to sustaining human well-being, 2015 sustainable development goals and development…
Abstract
Purpose
The analytical framework proposed in this study aims to link the capital portfolio approach to sustaining human well-being, 2015 sustainable development goals and development action ARC-D concepts. Nepal case study is a “tribrid” power generation system that combines distributed solar, hydro and wind power generation capacities for the resilience of a community of around 500 people in a remote village with a total installed capacity of 28 kW. The second case study is about the solarization of 900 health centres in Chhattisgarh, India, with off-grid solar PV with a cumulative capacity of 3 MW.
Design/methodology/approach
Critical infrastructure at the community scale needs to be resilient to maintain community-level functionality in the face of adverse impacts. The present study provides two case study sites from Nepal and India to demonstrate various elements of resilience building for critical infrastructures, especially for the energy sector.
Findings
Granular technology and distributed generation in Nepal and India can act as critical infrastructure in providing on-demand electricity service to enhance community-level resilience along with future opportunities of scale up.
Originality/value
The analytical framework for evaluating community-scale resilience through critical infrastructure design and application of the framework using evidence based on case studies are the original contributions.
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The research investigates how green bonds and Fintech contribute to advancing sustainable energy adoption in India while addressing the intricate investment risks associated with…
Abstract
Purpose
The research investigates how green bonds and Fintech contribute to advancing sustainable energy adoption in India while addressing the intricate investment risks associated with green initiatives.
Design/methodology/approach
This study employs a stringent approach, conducting an extensive examination of data to analyze the interplay among green bonds, Fintech, and the renewable energy industry in India.
Findings
The study unveils Fintech’s capacity to optimize financing for renewable projects in India by leveraging blockchain technology and digital platforms, enhancing accessibility and investor confidence. Additionally, it underscores the role of green bonds in fostering the development of eco-friendly energy sources.
Originality/value
This research offers novel insights into the dynamic relationship among green bonds, Fintech, and India’s renewable energy sector. It emphasizes the importance of adaptable regulatory frameworks in facilitating sustainability efforts and provides valuable guidance for stakeholders navigating environmental initiatives.
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Vandit Vijay, Ram Chandra and P.M.V. Subbarao
To better understand bioenergy's role in sustainable rural development and cleaner environment, it is necessary to place it in a local regional context. This paper aims to provide…
Abstract
Purpose
To better understand bioenergy's role in sustainable rural development and cleaner environment, it is necessary to place it in a local regional context. This paper aims to provide a conceptual approach for biomass-based energy self-sufficiency in rural areas of developing and underdeveloped countries having a strong agricultural sector. It further provides a framework for the estimation of surplus biomass and bioenergy potential and the biomass power emissions in a rural area.
Design/methodology/approach
A detailed approach is laid out to attain energy self-sufficiency in rural areas encompassing identification of surplus biomass resources in a selected area, suitable conversion technologies, consideration of local end-use priorities, skill development and monitoring of the project.
Findings
Following the novel approach proposed in this paper a case study analysis for Thanagazi block (Alwar District, India) is done, and it is observed that locally available biomass in the block can substitute more than 75% of the conventional energy demand and save 78% emissions vis-à-vis equivalent coal power. This indicates that creating local bioenergy production system as a means of substituting/complementing fossil energy can contribute to a cleaner self-sufficient ecosystem.
Originality/value
Biomass is a spatio-temporal resource. Prior works have looked at bioenergy potential for national or state levels; however, granular data to reveal a more realistic outlook in a rural area is the novelty of this work. Furthermore, biomass assessment studies largely focus on crop residual biomass, whereas the present study also includes livestock manure assessment which is a major resource in rural areas. This paper highlights the need and the approach for exploring locally available biomass to meet the local energy demands for clean energy security while considering the involvement of the local population in bioenergy planning and implementation.
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Ebenezer Bugri Anarfo, Abel Mawuko Agoba, Yakubu Awudu Sare and Daniel Komla Gameti
This study aims to investigate the impact of energy access on foreign direct investment (FDI) in an emerging market.
Abstract
Purpose
This study aims to investigate the impact of energy access on foreign direct investment (FDI) in an emerging market.
Design/methodology/approach
The study uses the two-stage least square instrumental variables estimation approach to compute the parameters of the model to account for any potential endogeneity and time persistence in energy access.
Findings
The results show that energy access significantly influences FDI inflows in Ghana. The results of the study also revealed that natural resources and macroeconomic variables such as real interest rate, gross domestic product growth rate are significant determinants of FDI inflows in Ghana.
Practical implications
The practical implication of this study is that there is a need for energy sector policy reforms in Ghana that would guarantee a secured and continued supply of energy to enhance energy access to boost FDI. Ghana should aim for a cost-effective, stable and environmentally friendly source of energy as an alternative to hydro energy as the main source of its power generation to promote FDI. Also, Ghana should initiate and implement policies aimed at creating an enabling and stable macroeconomic environment, as macroeconomic factors in this study are found to be drivers of FDI.
Originality/value
This study provides firsthand information on energy access and FDI from the Ghanaian perspective.
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The purpose of this study is to examine how renewable energy consumption moderates the relationship between inequality and carbon dioxide (CO2) emissions for Brazil, Russia…
Abstract
Purpose
The purpose of this study is to examine how renewable energy consumption moderates the relationship between inequality and carbon dioxide (CO2) emissions for Brazil, Russia, India, China and South Africa (BRICS). The nexus between energy use and geopolitical tensions has also been explored.
Design/methodology/approach
This study has used distinctive data sets from 1990 to 2018 to explore the interconnections on emission, energy use, inequality and geopolitics. To do away with the difficulties related to heterogeneity and cross-sectional dependence (CD), this paper uses recent estimation methods that are robust to panel heterogeneity and CD.
Findings
The results of the panel augmented mean group (AMG) estimation and common correlated effects mean group (CCEMG) estimation verify the environmental Kuznets curve. The findings show that a 1% rise in Gini inequality leads to a 0.24% rise in the CO2 emission (AMG) method and a 0.17% rise in emissions CCEMG (method). As far as the moderating impact of renewable energy upon Gini measure of inequality is concerned, it is −0.10 AMG and CCEMG methods of estimation, respectively. However, the moderating impact of renewable energy on the geopolitical index leads to a mitigating impact on CO2 emissions, 0.55% decline in AMG method.
Originality/value
This research makes a distinctive contribution by investigating for the first time to the best of the authors’ knowledge the main pillars of sustainable ecological development in the context of the BRICS nations.
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Geeta Rani Duppati, Stifanos Hailemariam, Roselyn Murray and Jana Kivell
This study aims to provide empirical evidence on two research questions: firstly, whether green finance is positively related to electricity access, and, secondly, if the domestic…
Abstract
Purpose
This study aims to provide empirical evidence on two research questions: firstly, whether green finance is positively related to electricity access, and, secondly, if the domestic economic environment moderates the relationship between green finance and electricity access? This paper pays particular attention to the regional disparities in Africa.
Design/methodology/approach
While pursuing the study objectives, the authors apply a variety of statistical approaches and tools to assess the robustness of the findings. The authors use panel dataset for analysing data. In order to empirically examine the relationship between green finance and electricity access in the African region, the paper employs static and dynamic panel estimation methods, Poisson method and adopts two-step system generalized method of moments (GMM) approach for dealing with issues relating to endogeneity. The authors also use alternate proxy for the electricity access, which is drawn from the regulatory indicators for sustainable energy (RISE) scores.
Findings
The authors find that despite the fact that green funding appears to support job creation, household incomes aren't high enough to drive rising demand for electricity. The study underscores the role and responsibilities of external funding agencies to ensure that funds at the receiving end are effectively routed to encourage access to clean and sustainable energy, which is good to the economic and domestic environment. Further, due to the relatively modest size of some funds, the cost to administer those funds is larger than the funds themselves. This causes inefficiencies, which may temporarily provide jobs but not lasting growth. This means there is no regular need for energy, therefore larger investors have no reason to enter the market. This discourages investors from public-private partnerships or private investments and prevents future investment.
Research limitations/implications
The provide insights into the private-public partnerships and whether the challenges to electricity access are being turned into investment opportunities. The effects of the power Africa project initiatives are revealing, with, sanitation being an impediment to the development of electricity infrastructure, specifically in low-income group countries.
Practical implications
The study confirms the view that trivial amounts of green financing (US-Aid or grants) impose a burden on the absorptive capacity of the recipient government and increases the transaction costs and is likely to be an impediment (Kimura et al., 2012) to initiating projects that enhance electricity access.
Social implications
The results indicate that although green financing seems to be supporting employment opportunities, income levels are insufficient to create demand for electricity usage. It, therefore, becomes imperative that sanitation (SDG 6) is fully addressed in order to ensure that SDG 7 is attained.
Originality/value
The authors provide insights around the private public partnerships and whether the challenges to electricity access are being turned into investment opportunities. The effects of the power Africa project initiatives are revealing, with, sanitation being an impediment to the development of electricity infrastructure, specifically in low-income group countries.