Does ICT diffusion exacerbate or mitigate the environmental impacts of renewable energy projects in Sub-Saharan Africa?
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The interplay between ICT, renewable energy, and CO2 emissions is a critical area of research, especially in the context of Sub-Saharan Africa, which faces significant challenges in terms of energy access, environmental sustainability, and technological development. This study examines the direct impact of information and communication technology (ICT) on environmental quality and its indirect impact through its interaction with renewable energy consumption. It also controls for other important macroeconomic variables across 48 Sub-Saharan African (SSA) countries from 2005 to 2020. The research employs various econometric panel data methods, including standard linear regression pooled-OLS, fixed-effects, random-effects models, and a more robust system-GMM approach. The results indicate that increased energy consumption, urbanization, and education negatively affect environmental quality, whereas trade openness has a positive impact. These findings are significant for policymakers, especially in the context of globalization and Africa's growing integration into the world economy through the African Continental Free Trade Area (AfCFTA) Agreement and the accompanying urbanization challenges. The study suggests an urgent need for a sustainable environmental strategy. It also highlights that the interaction between renewable energy and ICT diffusion can enhance environmental quality in SSA, implying that investments in R&D for renewable energy technologies are crucial for achieving environmental sustainability. JEL Classification : C23, Q43, Q53