Institutional Quality, Clean Energy and Environmental Sustainability in Sub-Saharan Africa

Purpose: The study investigates the impact of clean energy and institutional quality on environmental sustainability in Sub-Saharan Africa from 2010–2022. Design/Methodology/Approach: The unit root test scrutinized the level of stationarity, while the fully modified ordinary least square (FMOLS) was employed to check for long-run cointegration. Findings: The result revealed a negative and significant relationship between renewable energy consumption and CO2 emission. In addition, the interaction between renewable energy and institutional quality reveals a positive relationship. Research Limitation: Fully Modified Ordinary Least Square relies heavily on asymptotic theory, assuming that the sample size approaches infinity for the estimators’ properties to hold. In finite samples, which are common in practical research, the estimators’ properties may deviate from the theoretical expectations, potentially affecting the results. Research Limitations: This study can be extended to determine the impact of political instability on environmental sustainability in the region. Practical Implications: The government should develop a comprehensive clean energy policy to reduce environmental degradation resulting from CO2 emissions. Social Implication: Promoting clean energy and sustainable practices can increase environmental awareness among the population. Education programs associated with clean energy projects can foster a culture of sustainability, encouraging communities to adopt more environmentally friendly practices in their daily lives. Originality/Value: The study contributed to the body of knowledge by investigating the impact of clean energy and institutional quality on environmental sustainability in Sub-Saharan Africa while accounting for recent years that have not been covered by previous research.