首页|Exploring the impact of institutional quality to South Africa’s transition to renewables

Exploring the impact of institutional quality to South Africa’s transition to renewables

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Motivated by the need for transition toward cleaner and sustainable energysources, this study delves into the relationship between institutional qualityand South Africa’s renewable energy adoption. The objective is to examinehow institutional factors influence the share of renewable energy in thecountry, recognizing that energy transition hinges not only on socioeconomicand technological determinants but also on political economy andinstitutional variables. This paper proxies institutional quality by theCorruption Perception Index (CPI), Regulatory Quality (REGQUAL), andGovernment Efficiency (GOV_EFF), on South Africa’s renewable energyshare. We find that perceived institutional cleanliness, as measured bya higher CPI, positively affects the share of renewables. This can be attributedto the public’s growing association of corruption with government activitiesand fossil fuel-based electricity generation. Additionally, improved REGQUALfosters a healthier energy market but paradoxically results in a lower share ofrenewable energy in the short term. While contributing to stability, governmenteffectiveness can hinder renewables’ growth due to established industryinterests and short-term priorities. The implications of these findingsunderscore the complex interplay of political and institutional dynamics inshaping South Africa’s energy landscape. This research highlights the needfor integrated policies addressing environmental and socioeconomicobjectives.

InstitutionsEnergy transitionSouth AfricaRenewable energyCorruption

Roula Inglesi-Lotz

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Department of Economics, University of Pretoria, Pretoria, South Africa

2024

Energy sources, Part B. Economics, planning, and policy

Energy sources, Part B. Economics, planning, and policy

ISSN:1556-7249
年,卷(期):2024.19(1)
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