Renewable Energy Consumption in Africa: The Role of Economic Well-Being and Economic Freedom

Introduction

This page summarises the open-access study by Acheampong et al. (2020), published in Energy, Sustainability and Society, which investigates the relationship between renewable energy consumption, economic well-being, and economic freedom across African countries from 1996 to 2017. The study provides empirical evidence on how macroeconomic and institutional factors shape the continent’s energy transition.

Background

Renewable energy development in Africa is essential for sustainable growth, climate change mitigation, and energy access. However, uptake varies widely across countries due to differences in income levels, governance structures, and market openness. This research explores how economic well-being and economic freedom interact to drive or hinder renewable energy consumption.

Methodology

Panel dataset covering 32 African countries from 1996–2017. Econometric modelling using fixed-effects and dynamic panel regressions. Variables include GDP per capita (proxy for economic well-being) and economic freedom indices.

Key Findings

Income effect: Higher economic well-being is associated with increased renewable energy consumption, though energy demand patterns vary. Institutional role: Countries with greater economic freedom — especially in property rights and investment freedom — experience stronger renewable energy uptake. Energy mix dependency: Many African economies remain heavily dependent on traditional biomass; diversification requires supportive policies. Policy synergy: Economic growth alone does not ensure a renewable transition — institutional quality is equally important.

Policy Implications

Strengthen regulatory frameworks that reduce barriers to renewable energy investment. Integrate renewable energy goals into economic development strategies. Enhance institutional quality to support transparent markets and attract private investment. Encourage regional collaboration to share best practices in energy governance.

Conclusions

Renewable energy consumption in Africa depends not only on income growth but also on institutional and governance quality. Policies that combine economic development with institutional reforms are most effective in scaling up renewable energy.

Further Reading

Acheampong, A.O., et al. (2020). Renewable energy consumption in Africa: the role of economic well-being and economic freedom. Energy, Sustainability and Society, 10:23. DOI link

Attribution & Licence

This page summarises material from Acheampong et al. (2020). The original article is open access and licensed under the Creative Commons Attribution 4.0 International Licence (CC BY 4.0).