<p>Climate action is increasingly regarded as a major economic opportunity of the 21st century, with the potential to bring lasting improvements in living conditions across Sub-Saharan Africa, despite the region’s legacy of historical inequalities. This study empirically examines the effect of international climate finance on well-being in 46 Sub-Saharan African countries between 2000 and 2021. Using several econometric techniques including fixed effects, generalized least squares, the system generalized method of moments (S-GMM), and quantile regression, the results indicate that climate finance, whether global, adaptation-related, or mitigation-related, has a positive and significant effect on objective well-being. Sub-regional analysis shows that this effect is consistent but more pronounced in East and West Africa. Furthermore, mediation tests confirm that the influence of climate finance operates mainly through two channels: increased renewable energy consumption and reduced malnutrition, reflecting improvements in food security and energy resilience. We therefore recommend that the governments of sub-Saharan African countries direct part of their climate finance towards the dissemination of resilient agricultural practices focused on quality production, thereby reducing losses linked to food insecurity and improving community well-being.</p>

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From Crisis to Opportunity: Climate Finance as a Catalyst for Change for Greater Well-being in Sub-Saharan Africa

  • Hornela Charlaine Sehmeu,
  • Cyrille Bergaly Kamdem

摘要

Climate action is increasingly regarded as a major economic opportunity of the 21st century, with the potential to bring lasting improvements in living conditions across Sub-Saharan Africa, despite the region’s legacy of historical inequalities. This study empirically examines the effect of international climate finance on well-being in 46 Sub-Saharan African countries between 2000 and 2021. Using several econometric techniques including fixed effects, generalized least squares, the system generalized method of moments (S-GMM), and quantile regression, the results indicate that climate finance, whether global, adaptation-related, or mitigation-related, has a positive and significant effect on objective well-being. Sub-regional analysis shows that this effect is consistent but more pronounced in East and West Africa. Furthermore, mediation tests confirm that the influence of climate finance operates mainly through two channels: increased renewable energy consumption and reduced malnutrition, reflecting improvements in food security and energy resilience. We therefore recommend that the governments of sub-Saharan African countries direct part of their climate finance towards the dissemination of resilient agricultural practices focused on quality production, thereby reducing losses linked to food insecurity and improving community well-being.