Socioeconomic Analyses of Renewable Energy Options for Sub- Saharan Africa : a Regional and National Approach

Montclair State University Montclair State University Digital Commons Theses, Dissertations and Culminating Projects 5-2020 Socioeconomic Analyses of Renewable Energy Options for Sub- Saharan Africa : A Regional and National Approach Sydney Oluoch Follow this and additional works at: https://digitalcommons.montclair.edu/etd Part of the Earth Sciences Commons, and the Environmental Sciences Commons SOCIOECONOMIC ANALYSES OF RENEWABLE ENERGY OPTIONS FOR SUB- SAHARAN AFRICA: A REGIONAL AND NATIONAL APPROACH A DISSERTATION Submitted to the Faculty of Montclair State University in partial fulfillment of the requirements for the degree of Doctor of Philosophy in Environmental Science and Management by Sydney O Oluoch Montclair State University Upper Montclair, NJ May 2020 Dissertation chair: Dr. Pankaj Lal Copyright © 2020 by Sydney O Oluoch All rights reserved. Abstract SOCIOECONOMIC ANALYSES OF RENEWABLE ENERGY OPTIONS FOR SUB- SAHARAN AFRICA: A REGIONAL AND NATIONAL APPROACH by Sydney Oluoch The energy demands of future Sub Saharan African (SSA) economies will be primarily driven by population and economic development. The expected primary challenge will be meeting the increased energy demands while mitigating greenhouse gas (GHG) emissions. This can be achieved by reducing dependence on fossil fuels and transitioning towards renewable sources of energy. This dissertation aims at assessing renewable energy options for SSA through three primary objectives. First, we provided insight into the scope, trends, and focus of renewable energy research in SSA by quantitatively reviewing scientific articles. The approach allowed us to determine the geographical scope, different types of renewable energy, distribution of articles in journals, and year of publication. The quantitative review can help inform renewable energy laws and policy and highlight areas for future research. Second, we examined the relationship between renewable energy consumption with various economic, social, and environmental determinants using panel-data based econometric model developed for 44 SSA countries spanning over 1990 to 2014. The results helped identify factors that impact renewable energy consumption in SSA. This was through showcasing the need for SSA countries to invest in renewables to increase energy access, stimulate economies and to tap into the benefits of carbon markets. In view of the wide distribution of renewable energy potential in SSA, the chapter unveiled the need for policies that provide economic incentives and subsidies that are geared towards making renewable energy cost more competitive to traditional fossil fuels. Third, we conducted a comparative assessment of two case studies of SSA (Kenya and Rwanda), in-order to assess public awareness, acceptance, and attitudes iv towards renewable energy. This objective addressed the need to integrate public input in the development of renewable energy policy. From our results it was apparent that the public in both countries, had a high level of awareness, acceptance and attitudes towards renewable, hence policy should shift to increasing knowledge and public participation. In our last chapter, we evaluated public preferences towards attributes of renewable energy (biomass, solar, small-hydro, wind and geothermal) in Kenya and Rwanda using a discrete choice experiment approach. The objective addressed the need to assess tradeoffs between different attributes of renewable energy, in order to understand social, environmental and economic benefits and costs of non –market goods. Our findings highlighted differences in preferences between rural and urban residents of both countries. The general trends indicated a preference for solar, hydropower, wind, geothermal and biomass respectively. The public also placed a high utility on environmental impact, job creation and type of renewable energy. Overall, this thesis investigates future renewable energy options for SSA, by using various econometric approaches to probe into the various issues that impact renewable energy development. In summary, there is overwhelming evidence of public support for renewables in our case-studies. The next step would be extending the case-studies to other SSA countries, and tasking decision makers to integrate public input in formulation and implementation of effective policies in-order to realize green and prosperous economies for SSA. KEYWORDS: Renewable energy, Panel Data, Choice experiment, Rwanda, Conditional Logit, Random parameter logit, Sub-Saharan Africa v Acknowledgements I am deeply grateful to several people who have helped me in completing my doctoral studies. Foremost, I would like to thank my advisor Dr. Pankaj Lal, for his invaluable and unwavering support over the past years. He has been a great mentor and guide during my time in the program and has pushed me to expand my capabilities as a researcher. To the other members of my committee, Dr. Andres Susaeta, Dr. Neeraj Vedwan, Dr. Michel Masozera and Dr. Yang Deng who have provided valuable guidance and encouragement at different stages of my doctoral research. I have learned a great deal from my discussions with them and by observing their work ethic. My colleagues at Clean Energy and Sustainability Analytic Center (CESAC) that have made my time at Montclair State University extremely enjoyable. All of you have enriched my doctoral studies by sharing your insights on a range of issues, introducing me to your research - making this program truly interdisciplinary. Lastly, I want to thank my friends and family. My friends back in Kenya as well as those here in the United States have been a great source of support. I thank my father for being my guiding light, my mother for her sage advice and for constantly reminding me to work harder. I thank my siblings for leading by example, and for keeping me honest and grounded. I will always look up to you. I want to thank my wife for her love, patience, and support. Yours is the most significant contribution to my doctoral journey. By taking on every other responsibility for our family and maneuvering your career, you have allowed me the freedom to pursue a PhD and fulfill my desire to engage in research. To you I shall be forever indebted. vi To my family vii Contents 1 Introduction ..................................................................................................................... 1 1.1 Background ............................................................................................................. 1 1.2 Research Objectives ................................................................................................ 3 References ........................................................................................................................... 6 2 .Quantitative review of renewable energy studies in SS................................................8 2.1 Introduction ........................................................................................................... ..8 2.2 Methodology ......................................................................................................... 11 2.3 Results and Discussion ......................................................................................... 13 2.3.1 Distribution of publications on Renewable Energy in SSA......................... 13 2.3.2 Geographical Distribution of Reneable energy publications ....................... 15 2.3.3 Methods applied in corpus ........................................................................... 16 2.3.4 Bibliometric mapping .................................................................................. 18 2.3.5 Distribution of publication about renewable energy .................................... 20 2.3.5.1 Biomass ........................................................................................... 21 2.3.5.2 Solar ................................................................................................. 26 2.3.5.3 Other forms of renewables ............................................................... 27 2.4 Conclusions ........................................................................................................... 28 References ......................................................................................................................... 31 3. Factors affecting renewable consumption in SSA..................................................... 37 3.1 Introduction ........................................................................................................... 37 3.2 Methodology ......................................................................................................... 39 3.2.1 Panel Data Regression Analysis Model ....................................................... 39 3.2.2 Estimation procedures .................................................................................. 42 3.3 Results .................................................................................................................. 45 3.3.1 Instrumental variable tests ........................................................................... 45 3.3.2 Specification 1 and scenario analysis .......................................................... 46 3.4 Discussion ............................................................................................................ 49 3.4.1 Economic indicators..................................................................................... 49 3.4.2 Environmental indicators ............................................................................

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