Do renewable energies contribute to enhancing environmental quality in Eastern Africa?

Abstract

East Africa has enormous renewable energy potential, but only a small portion of it has been exploited, and little is known on its role in improving environmental quality. Thus, this study empirically examines the impact of renewable energy on the environment using ecological footprint (EF; positive indicator) and CO2 emissions (negative indicator) as proxy indicators for environmental quality in a panel of ten East African countries from 1990 to 2015. These indicators were chosen due to their potential impact in the environment. The work used the pooled mean group (PMG) as the main panel estimator to determine the impact while controlling non-renewable energy consumption, GDP per capita, and foreign direct investment (FDI). PMG has been used as it forces the long-run coefficients to be equal across all panel groups. The findings show that in the long run, there is a significant negative relationship between CO2 emissions and renewable energy consumption, as well as a significant positive relationship (with a low impact) between EF and renewable energy consumption, suggesting that renewable energy use enhances the area's environmental quality. Also, results indicate that non-renewable energy use degrades environmental quality in both metrics, whereas GDP degrades environmental quality through CO2 emissions and improves environmental quality through EF. This requires East African countries to focus a higher emphasis on accessible renewable energy sources to achieve quick and sustainable economic growth and minimize environmental effects. To accomplish this, strategic policies and legislation, as well as the promotion of green technology, are required.