THE IMPACT OF FINANCIAL DEVELOPMENT ON RENEWABLE ENERGY CONSUMPTION IN KENYA
Purpose: Increasing awareness of global warming consequences, together with the call for all countries to take responsibility for reducing their carbon footprint by moving to cleaner energy use motivated this study to examine the impact of financial sector development on renewable energy for Kenya....
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| Format: | Article |
| Language: | English |
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University of Banja Luka, Faculty of Economics
2024-12-01
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| Series: | Acta Economica |
| Subjects: | |
| Online Access: | https://www.ae.ef.unibl.org/index.php/ae/article/view/499 |
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| author | Mercy T Musakwa Nomfundo P Vacu Nicholas M Odhiambo |
| author_facet | Mercy T Musakwa Nomfundo P Vacu Nicholas M Odhiambo |
| author_sort | Mercy T Musakwa |
| collection | DOAJ |
| description | Purpose: Increasing awareness of global warming consequences, together with the call for all countries to take responsibility for reducing their carbon footprint by moving to cleaner energy use motivated this study to examine the impact of financial sector development on renewable energy for Kenya. The study aims to answer the question, ‘Can financial sector development help Kenya to increase renewable energy consumption?’ The study used annual data from 1990 to 2020 to examine the nature of the relationship between the two variables. Methodology: The study employed autoregressive distributed lag (ARDL) approach. Results: The study found financial development to have a positive impact on renewable energy consumption in the short and long run. Conclusions: The results point to the significant role that the financial sector plays in availing resources for cleaner energy projects. Recommendations: Policymakers in Kenya should harness the country’s financial sector potential to meet the Sustainable Development Goals aligned to cleaner energy consumption.
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| format | Article |
| id | doaj-art-5c71947d74354aba9f2da9ea66ce2d48 |
| institution | Kabale University |
| issn | 1512-858X 2232-738X |
| language | English |
| publishDate | 2024-12-01 |
| publisher | University of Banja Luka, Faculty of Economics |
| record_format | Article |
| series | Acta Economica |
| spelling | doaj-art-5c71947d74354aba9f2da9ea66ce2d482025-01-10T14:15:03ZengUniversity of Banja Luka, Faculty of EconomicsActa Economica1512-858X2232-738X2024-12-01224110.7251/ACE2441039MTHE IMPACT OF FINANCIAL DEVELOPMENT ON RENEWABLE ENERGY CONSUMPTION IN KENYAMercy T Musakwa0https://orcid.org/0000-0001-6280-140XNomfundo P Vacu1https://orcid.org/0000-0003-4518-7764Nicholas M Odhiambo2https://orcid.org/0000-0003-4988-0259Department of Economics, University of South Africa, UNISA, Pretoria, South AfricaDepartment of Economics, University of South Africa, UNISA, Pretoria, South AfricaDepartment of Economics, University of South Africa, UNISA, Pretoria, South AfricaPurpose: Increasing awareness of global warming consequences, together with the call for all countries to take responsibility for reducing their carbon footprint by moving to cleaner energy use motivated this study to examine the impact of financial sector development on renewable energy for Kenya. The study aims to answer the question, ‘Can financial sector development help Kenya to increase renewable energy consumption?’ The study used annual data from 1990 to 2020 to examine the nature of the relationship between the two variables. Methodology: The study employed autoregressive distributed lag (ARDL) approach. Results: The study found financial development to have a positive impact on renewable energy consumption in the short and long run. Conclusions: The results point to the significant role that the financial sector plays in availing resources for cleaner energy projects. Recommendations: Policymakers in Kenya should harness the country’s financial sector potential to meet the Sustainable Development Goals aligned to cleaner energy consumption. https://www.ae.ef.unibl.org/index.php/ae/article/view/499Kenyafinancial developmentrenewable energyAutoregressive distributed lag (ARDL)energy consumption |
| spellingShingle | Mercy T Musakwa Nomfundo P Vacu Nicholas M Odhiambo THE IMPACT OF FINANCIAL DEVELOPMENT ON RENEWABLE ENERGY CONSUMPTION IN KENYA Acta Economica Kenya financial development renewable energy Autoregressive distributed lag (ARDL) energy consumption |
| title | THE IMPACT OF FINANCIAL DEVELOPMENT ON RENEWABLE ENERGY CONSUMPTION IN KENYA |
| title_full | THE IMPACT OF FINANCIAL DEVELOPMENT ON RENEWABLE ENERGY CONSUMPTION IN KENYA |
| title_fullStr | THE IMPACT OF FINANCIAL DEVELOPMENT ON RENEWABLE ENERGY CONSUMPTION IN KENYA |
| title_full_unstemmed | THE IMPACT OF FINANCIAL DEVELOPMENT ON RENEWABLE ENERGY CONSUMPTION IN KENYA |
| title_short | THE IMPACT OF FINANCIAL DEVELOPMENT ON RENEWABLE ENERGY CONSUMPTION IN KENYA |
| title_sort | the impact of financial development on renewable energy consumption in kenya |
| topic | Kenya financial development renewable energy Autoregressive distributed lag (ARDL) energy consumption |
| url | https://www.ae.ef.unibl.org/index.php/ae/article/view/499 |
| work_keys_str_mv | AT mercytmusakwa theimpactoffinancialdevelopmentonrenewableenergyconsumptioninkenya AT nomfundopvacu theimpactoffinancialdevelopmentonrenewableenergyconsumptioninkenya AT nicholasmodhiambo theimpactoffinancialdevelopmentonrenewableenergyconsumptioninkenya |