Renewable energy promotion and energy poverty nexus: do economic misery index and institutional quality matter?

This study applies the moment quantile regression technique (MMQR) while investigating the effect of renewable energy promotion (REP) on energy poverty (EP) and the mechanisms involved. Analyzing panel data from 36 Sub-Saharan Africa (SSA) countries covering the years 2000 to 2022, the findings initially show that REP helps to alleviate EP. Additionally, linear as well as nonlinear approaches confirm that the misery index (MI) and institutional quality (INSQ) affect their interaction in two ways: moderatingly and thresholdingly. Low MI makes REP reduce EP, while high MI reverses this effect. Additionally, low INSQ worsens the impact of REP on EP, with INSQ having a stronger moderating effect than MI. Considering heterogeneity, higher MI and lower INSQ mitigate the negative effects of REP on EP in countries with moderate clean energy access. Additionally, REP has a more pronounced negative impact on EP in Eastern and Southern regions compared to Western and Central SSA. Our results support targeted initiatives to lower EP and advance renewable energy adoption in four existing power pools. Countries with low MI or high INSQ can boost REP digital innovations to reduce EP. However, with high MI or low INSQ, authorities should be cautious with REP development.