Does access to energy matter? Understanding the complex nexus among energy consumption, ICT, foreign direct investment and economic growth on carbon emissions in Sub-Saharan Africa

Abstract

Carbon emissions and energy accessibility have emerged as significant obstacles to society's sustainable growth. This study investigates the non-linear impact of access to energy on carbon emissions by constructing a fixed-panel double-threshold regression model. The analysis utilises data from 2000 to 2019, encompassing 45 countries in Sub-Saharan Africa. The results outline that by employing the proportion of the population with access to electricity as the threshold parameter, the initial phases of foreign direct investment significantly lower carbon emissions. However, the later stages of FDI demonstrate an attenuated significantly positive link with carbon emissions. Secondly, by using the population with access to electricity as the threshold factor, primary energy consumption develops a significant and positive relationship with emissions in the initial levels that becomes more robust in the later intervals. Moreover, economic growth generates a positive relationship with environmental quality. However, the association between ICT and emissions is insignificantly positive. The d-H causality test results prove a bi-directional causal link between economic growth and carbon emissions, primary energy use and environmental quality, as well as ICT and emissions. The research proposes a comprehensive strategy for achieving sustainable development in Sub-Saharan Africa. Policymakers may develop policies for promoting clean energy access, responsible use of information and communication technology (ICT) and attracting environmentally aware foreign investment by examining the derived outcomes of the relationship between energy access, ICT, foreign direct investment (FDI), economic growth effects, and carbon emissions.