Corruption: Is it a bane to renewable energy consumption in Africa?

Peer Reviewed
2 March 2022

Increasingly, a significant part of the literature on corruption establishes a negative relationship between corruption and economic variables. However, empirical research showing the influence of corruption on renewable energy consumption is useful because of the global interest in achieving a low-carbon and clean environment. In this light, we model a relationship between corruption and renewable energy consumption (% of total final energy consumption) in Africa. Using a panel dataset for 32 African countries covering the period 1996–2019, we first show that perception about corruption is relatively high in Africa. In line with corruption theory, both Generalized Method of Moments and Instrumental Variable estimation techniques are used to establish that corruption is inimical to the share of renewable energy consumption in total final energy consumption in Africa. To investigate the robustness of the results, we disaggregate the sample into high and low environmental performance countries as well as upper and lower-middle-income countries and still find consistent results. Our results call for strategic policies and institutional structures that seek to prevent corruption from further permeating the continent's administrative structures.

Anthony Amoah, Rexford Kweku Asiama, Kofi Korle, Edmund Kwablah

EfD Authors
Publication | 15 March 2023