Do ICTs promote the renewable energy consumption? The moderating effects of economic growth and structural transformation in Africa

Abstract

In light of the challenges posed by depleting energy resources and environmental degradation, the effective use of renewable energy is becoming ever more crucial. This study mainly investigates the role of ICT as driver of renewable energy consumption in Africa. Furthermore, the study aims to emphasize the moderating effects of economic growth and structural transformation. To achieve this, the study employs the Augmented Mean Group (AMG) estimator on a panel data of 45 African countries over the period 2000-2019. The findings show that internet and ICT service export promotes the use of renewable energy consumption, suggesting that the African nations examined have realized improvements in their energy mix as a result of ICT development. The moderating effects reveals that upgrading the energy consumption structure affected by the digitalization is more significant in countries with high economic growth and more service-oriented. Our findings lead to a discussion of policy implications in relation to sustainable development goals (SDG).