Assessing the Key Mediating and Moderating Factors in the Renewable Energy Generation and Financial Institution Development Nexus Among African Economies
Findings reveal renewable energy generation improves with financial institution development in Africa, indicating governance and resource dependence matter.
Key Points
This research examines how financial institution development impacts renewable energy generation in Africa.
Analyzes the influence of credit to the private sector as a mediating channel
Evaluates the moderating roles of institutional quality and natural resource rents
Employs a Panel Autoregressive Distributed Lag model for analysis
Financial institution development promotes renewable energy generation up to a resource dependence threshold
Institutional quality enhances the positive effects of financial development
Private sector credit fully transmits the impact of financial institution development on renewable energy generation