Elusive trade-off: The solution to energy poverty and GHG emissions in Africa

Abstract

A groundbreaking strategy known as "coopetition" has emerged to provide energy access to underserved populations in Africa while reducing greenhouse gas emissions. This approach, applied across 54 African nations, combines cooperation and competition, supported by a comprehensive financial framework encompassing financial development, foreign direct investment (FDI), and official development assistance (ODA). Utilizing advanced moderated multiple regression analysis with data from reliable international sources and IBM SPSS Statistics (Version 28.0.1.1 (14)), this study highlights the strong connection between financial resources, energy poverty, and emissions. Inadequate financial support hinders renewable energy adoption and policy development, contributing to rising emissions. The research explores how coopetition modifies the relationship between ODA and energy poverty while reinforcing links between coopetition, ODA, and reduced emissions. Notably, the study challenges conventional wisdom by debunking the direct influence of financial development and foreign direct investment on energy poverty and emissions. Instead, it underscores the importance of transparent regulations, robust financial structures, and risk mitigation in advancing sustainable energy solutions.