Greening the environment: do climate-related development finances and renewable energy consumption matter? An African tale

Figures & data

Table 1. Variables description and data sources.

Variable	Description	Source
CRDF	Climate-Related Development Finance (thousands of dollars)	https://oe.cd/development-climate
ARDF	Adaptation Related Development Finance (thousands of dollars)
MRDF	Mitigation Related Development Finance (thousands of dollars)
CO2	Carbon dioxide emissions (metric tons per capita)	https://data.worldbank.org/indicator (accessed on January 10, 2023)
REC	Renewable energy consumption (% of total energy consumed)
ENI	Energy intensity level of primary energy (MJ/$2017 PPP GDP)
GDPP	Gross Domestic Product per capita (current USD)
FDI	Foreign Direct Investment, net inflows (% of GDP)
UPOP	Urban Population Growth (annual %)

Source: Authors’ Construct.

Figure 1. Trends of climate related-development finances, mitigation related-development finances, CO₂ emissions, and renewable energy consumption in Africa. Source: Author’s construct using STATA 17

Figure 2. Scatter plots of the relationship between the overall climate-related development finances, mitigation finance, adaptation finance, renewable energy consumption and CO₂ emissions in Africa. Source: Author’s construct using STATA 17

Table 2. Summary of descriptive statistics.

Variable	Obs	Mean	Std. Dev	Min	Max
lnCRDF	861	9.198	3.579	0	14.694
lnMRDF	861	8.713	3.42	0	14.658
lnARDF	861	5.591	5.561	0	14.187
CO2	820	1.019	1.707	0.02	10.349
REC	820	62.693	29.222	0.06	98.34
FDI	861	3.638	5.64	−18.918	64.384
lnGDPP	861	7.014	1.031	4.705	9.896
UPOP	861	3.739	1.37	−0.038	8.368
ENI	820	6.508	3.843	1.03	26.91

Source: Authors’ calculations through Stata 17.

Table 3. Matrix of correlations.

Variables	(1)	(2)	(3)	(4)	(5)	(6)	(7)	(8)	(9)
(1) CO2	1.000
(2) lnCRDF	−0.077	1.000
(3) lnMRDF	−0.085	0.953	1.000
(4) lnARDF	−0.042	0.687	0.575	1.000
(5) REC	−0.647	−0.061	−0.061	−0.035	1.000
(6) FDI	0.039	−0.032	−0.043	0.009	−0.012	1.000
(7) lnGDPP	0.702	0.102	0.059	0.204	−0.705	0.020	1.000
(8) UPOP	−0.109	−0.015	−0.012	−0.010	0.342	0.157	−0.260	1.000
(9) ENI	−0.210	−0.009	0.014	−0.104	0.520	−0.001	−0.488	0.014	1.000

Source: Authors’ calculations through Stata 17.

Table 4. GMM Estimates of the effects of climate-related development finances, and renewable energy consumption on CO₂ emissions.

	(1)	(2)	(3)
VARIABLES	CO2	CO2	CO2
Short run estimates
L.CO2	1.160***	1.140***	1.193***
	(0.00326)	(0.00336)	(0.00718)
REC	0.00310***	0.00261***	0.00359***
	(0.000237)	(0.000164)	(0.000371)
UPOP	−0.0239***	−0.0184***	−0.0300***
	(0.00488)	(0.00546)	(0.00644)
FDI	0.00339***	0.00334***	0.00381***
	(0.000521)	(0.000488)	(0.000598)
lnGDPP	−0.164***	−0.146***	−0.203***
	(0.00630)	(0.00642)	(0.00914)
ENI	−0.0231***	−0.0204***	−0.0273***
	(0.00194)	(0.00187)	(0.00212)
lnCRDF	0.0108***
	(0.000815)
lnMRDF		0.0104***
		(0.000678)
lnARDF			0.00691***
			(0.000590)
Constant	0.955***	0.841***	1.276***
	(0.0597)	(0.0653)	(0.0597)
Long run estimates
REC	−0.0195***	−0.0187***	−0.0186***
	(0.00148)	(0.00138)	(0.00150)
UPOP	0.1501***	0.132***	0.156***
	(0.0284)	(0.0362)	(0.0283)
FDI	−0.0213***	−0.0239***	−0.0198***
	(0.00329)	(0.00339)	(0.00320)
lnGDPP	1.0294***	1.0411***	1.0514***
	(0.0327)	(0.0303)	(0.0338)
ENI	0.145***	0.146***	0.141***
	(0.0129)	(0.0137)	(0.0133)
LnCRDF	−0.0678***
	(0.00490)
LnMRDF		−0.0743***
		(0.00573)
lnARDF			−0.0358***
			(0.00196)
System GMM diagnostic test^a
	(1)	(2)	(3)
	CO2	CO2	CO2
AR (2)	0.539	0.574	0.509
Hansen J	0.126	0.103	0.070
Number of Instruments	27	27	27
Number of Groups	41	41	41
Year Dummies	Yes	Yes	Yes
Prob > F	0.000	0.000	0.000
Observations	779	779	779

Standard errors in parentheses.

^aSource: Authors’ calculations through Stata 17.

Note: *** denotes statistical significance at 1% (p < 0.01); ** indicates statistical significance at 5% (p < 0.05), and * represents statistical significance at 10% (p < 0.1).

Data availability statement

Data for the analysis can be accessed online at the following links: https://oe.cd/development-climate and https://data.worldbank.org/indicator (accessed on January 10, 2023).