Renewable Energy, Regulation, Employment and Environmental Sustainability in Sub-Saharan Africa

Abstract

This paper examines the impact of employment, regulatory quality and urbanization on environmental quality by using renewable energy as a metric of environmental indicator in sub-Saharan Africa. The environmental Kuznets curve (EKC) theory was used as the theoretical framework while the difference Generalized Method of Moments (GMM) was utilised as the estimation technique. 45 sub-Saharan African countries covering the period of 2008 to 2016 were used as the sample size. The result reveals that increase in employment and income is at expense of environmental quality while regulation quality and urbanization increase environmental quality. As such, policymaking in the region should support the development of renewable energy by providing incentives that encourage private sector investment in renewable energy; implement sound policies and regulations that promote private sector employment and smart cities development.