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Impact of technological innovation and international trade on clean energy consumption in West Africa

In plain language

This study investigated how technological innovation and international trade influence clean energy consumption in six West African nations from 1991 to 2021, against a backdrop of rapidly increasing energy demand. Employing a robust panel data approach, including panel quantile regression, the research also considered factors such as GDP per capita, financial development, urbanisation, and manufacturing. Findings revealed that technological change, measured by internet penetration, had a statistically significant but adverse effect on clean energy use, suggesting a decoupling of digital infrastructure from renewable energy adoption. Trade openness showed positive but often insignificant effects, indicating limited clean technology spillovers. However, urbanisation and manufacturing strongly boosted clean energy consumption, particularly at higher usage levels. Financial development had mixed effects, with adverse impacts at lower consumption quantiles. The study underscores the need for focused policies to align technological advancement and trade with clean energy targets.

Key takeaways

  • Technological change, indicated by internet penetration, negatively affects clean energy consumption in West Africa.
  • Trade openness has a positive but often statistically insignificant impact on clean energy use, suggesting limited clean technology spillovers.
  • Urbanisation and manufacturing significantly increase clean energy consumption, especially at higher usage levels.
  • Financial development shows mixed effects on clean energy, with adverse impacts at lower consumption quantiles.
  • Policies are needed to better align technological advancement and trade with clean energy targets in the region.

Why it matters

West Africa faces rapidly increasing energy demand, risking greater environmental degradation and hindering climate change efforts. Understanding how technology and trade influence clean energy adoption is crucial for developing effective policies. This research provides insights for policymakers to promote sustainable energy and mitigate climate impacts in a region experiencing significant growth.

Commercialisation angle

The abstract does not indicate a direct application pathway for a specific product or service, nor does it identify a particular user group for commercialisation. It focuses on policy implications and provides intelligence for sustainable energy policymaking. The research is foundational, informing strategic decisions rather than offering a near-market solution.

AI-generated from the published abstract. Always read the original work before citing.

Abstract

Energy demand in West Africa has expanded rapidly, with electricity consumption projected to increase by more than fourfold between 2015 and 2030 due to urbanization and economic growth. Thus, energy dependence on unsustainable energy sources tends to increase environmental degradation and slow down advancement toward the area of significant climate change measures. Amid this backdrop, technological innovation and international trade are critical yet insufficiently explored avenues for fostering clean energy consumption. This study investigates how these two variables affect clean energy usage in six West African nations from 1991 to 2021. A robust panel data approach is employed, including panel quantile regression, dynamic ordinary least squares (DOLS), and panel cointegration, while also investigating the influences of GDP per capita, development of finance, urbanization, and value-added manufacturing with innovations and trade on clean energy dynamics. The results indicate that technological change, as recorded by internet penetration, has statistically significant but adverse effects on the use of clean energy, suggesting digital infrastructure decoupling with renewable energy adoption. Trade openness, while positive, is not always statistically significant, indicating that clean technology spillovers are limited. Urbanization and manufacturing processes, however, have strong positive effects, especially at higher quantile levels of consumption. Financial development has mixed effects, with adverse effects at lower quantiles. These findings underscore the need for focused policies to align technological advancement and trade policies with clean energy targets. This study offers essential intelligence for sustainable energy policymaking in West Africa.

Research topics

  • Energy and Environment Impacts
  • Energy, Environment, Economic Growth
  • Climate Change and Sustainable Development

Sustainable Development Goals

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DOI: 10.1016/j.egyr.2026.109711

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