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This paper analyzes the nexus between energy consumption, financial development, and economic growth in twenty-one (21) sub-Saharan African (SSA) nations by using the nonlinear autoregressive distributed lag (NARDL) framework from 1990Q1 to 2014Q4. First, the study reveals that energy consumption and financial development have asymmetrical impacts on economic growth in most countries in the short and long term. Second, positive shocks to financial development favor economic growth in only a few nations compared to the negative shocks in the short term, whereas they have mixed effects in the long term. Third, we found that adverse shocks to energy consumption boost economic growth in several nations in the short term, unlike the positive shocks, but the scenario has reversed in the long term. We also found that gross fixed capital formation and labor force remain key factors promoting economic growth in many SSA countries, in contrast to the mixed effects of trade openness over time. Accordingly, our study recommends implementing energy-saving policies in specific SSA countries to stimulate sustainable development. Policymakers must embrace an effective credit allocation to the private sector supporting productive investments. Governments should also optimize domestic investments in physical capital, upgrade the labor force, and implement efficient strategies in international trade. These policy recommendations need to be implemented according to the unique socio-economic characteristics of each SSA country. [ABSTRACT FROM AUTHOR]

In view of the United Nations' Sustainable Development Goals on clean and responsible energy consumption, climate change mitigation, and sustainable economic growth (UN-SDGs-7, 11–13), this study examines institutional quality (IQ)–carbon emissions nexus in the framework of the Environmental Kuznets Curve (EKC) hypothesis. Six dimensions of IQ from the World Governance Indicators (WGIs) were used while focusing on Sub-Saharan African (SSA) countries between 1996 and 2019. After controlling for growth, energy use, and industrialization levels, the empirical results validated the EKC hypothesis for the SSA as a unit increase in economic growth initially worsens the environment while further economic expansion eventually improves the environment. However, mixed results were obtained on the effects of IQ indicators. CO2 emissions are only substantially reduced by corruption control, regulatory quality, and the rule of law among other IQ measures. Furthermore, the causality analysis showed a unidirectional causality between growth and environmentally detrimental energy consumption levels coupled with a two-way emission-population growth causality flow as well as a two-way emissions—IQ causality channel. While economic growth, energy use, and industrialization levels undermine environmental sustainability in the SSA region via increased carbon emissions, the overall findings signal the moderating roles of IQ. Hence, the strengthening of institutions is recommended for environmental sustainability enhancement in the SSA region. [ABSTRACT FROM AUTHOR]