GTAP Resources: Resource Display
| GTAP Resource #7412 |
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"Harnessing Renewables in Sub-Saharan Africa: Barriers, Reforms, and Economic Prospects" by Cai, Kaihao, Thibault Lemaire, Andrea Medici, Giovanni Melina, Gregor Schwerhoff and Sneha Thube Abstract To achieve universal electricity access and rapid economic development, sub-Saharan Africa must significantly accelerate its electricity generation. Despite rising real per capita incomes over the past two decades, electricity production per capita has declined. Hydropower is prominent in some countries, but solar and wind power generation lags behind other regions, despite sub-Saharan Africa's favorable conditions, particularly for solar energy. Increasing reliance on solar and wind energy would be economically beneficial due to the reduced costs of renewables and the region's geography, irrespective of climate ambitions. However, a faster transition is necessary to meet climate policy objectives. Low-carbon energy sources have low operating expenses but require high initial capital investments. The main challenge for sub-Saharan Africa is securing financing for renewable energy investments. A combination of domestic and external financing can boost renewable electricity generation and GDP. Sole reliance on domestic financing would increase power generation but reduce overall economic benefits due to the crowding-out effect on other sectors. Domestic revenue sources for green energy investments vary by country and include carbon taxes, repurposing fossil fuel subsidies, and revenues from mining critical minerals. Advanced economies have pledged $100 billion annually to climate finance for emerging markets and developing economies, with a new collective quantified goal expected at COP29 in November 2024. In one scenario, sub-Saharan Africa could receive about half of this finance, allocated to climate mitigation and adaptation. If half of the climate finance received is dedicated to renewable energy, renewable electricity production could be up to 24% higher than the baseline scenario, boosting annual GDP growth by 0.8 percentage points on average over the next decade and increasing labor demand in the electricity sector. |
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- Climate change policy - Renewable energy - GTAP Data Base and extensions - Domestic policy analysis - Africa (Central) - Africa (East) - Africa (North) - Africa (Southern) - Africa (West) |
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If you have trouble accessing any of the attachments below due to disability, please contact the authors listed above.
Public Access  Paper (912.9 KB) Replicated: 0 time(s)Restricted Access No documents have been attached. Special Instructions No instructions have been specified. |
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Last Modified: 9/15/2023 2:05:45 PM
