The role of energy intensity and renewable energy in achieving environmental sustainability in African countries: A panel data analysis

The effects of renewable energy use and energy intensity on environmental sustainability constitute one of the main problems of the clean energy transition process, especially in Africa. This study analyses the impacts of renewable energy use and energy intensity on environmental sustainability, as represented by CO₂ emissions, in 24 African countries. Using the annual panel data set for the period 1990–2021, firstly the cross-sectional dependence, slope heterogeneity and stationarity properties of the variables were tested. Then, the panel cointegration relationship was examined by Kao and Pedroni methods. Following these, common correlated effects estimator, augmented mean group estimator, and mean group estimator tests were applied for estimations. In terms of robustness, simultaneous quantile regression and generalised method of moments methods were used. The general results show that renewable energy reduces CO2 emissions for all three tests, while energy intensity increases them. Therefore, technology and infrastructure programmes that will increase energy efficiency should be implemented together with financial incentives to increase renewable energy investments in these countries. At the same time, sustainable growth targets can be achieved while reducing emissions by introducing regulations that discourage carbon-intensive activities.