Essossinam Ali

The design, implementation, and evaluation of energy policies in combating climate change are becoming increasingly evident to strengthen economic growth driven by the agricultural sector in most developing countries. The study analyzes the direct and indirect effects of renewable energy consumption (REC) on agriculture value-added (AgVA), CO2 emissions, and trade openness in the short- and long-run in the West African countries. The second-generation panel unit root tests, the panel cointegration methods, and Panel Vector Error Correction Model are used with World Bank data from 1990 to 2015. A panel Granger causality test was also used to determine the direction of causality between variables. Findings show a unidirectional relationship between AgVA, CO2 emissions, and REC; between REC, gross fixe capital formation (GFCF) and trade openness. Moreover, the bidirectional hypothesis is verified between agricultural development and trade openness. However, the null hypothesis is found between AgVA and GFCF, on the one hand, and GFCF and CO2 emissions, on the other hand. These results suggest that fostering renewable energy policy and revisiting trade policy toward reducing environmental pollution will enable agricultural development and boost the regional economy.

Acknowledgment
The author wants to thank Dr. Moukpè GNINIGUE for his technical supports and Prof. Jean Marcelin Bosson BROU from the University of Houphouet Boigny (Cote d’Ivoire), Dr. Odzadifo K. WONYRA and Dr. Hodabalo BATAKA from the University of Kara, Dr. Koffi Massesso ADJI from the West African Sciences Services Centre on Climate Change and Land Use (University of Cheikh Anta Diop, Dakar) and Essotanam MAMBA from the University of Lomé for their constructive comments on the earlier version of this manuscripts. Finally, the author is grateful to the anonymous reviewers and Editor-in-Chief of Environmental Economics, whose comments have improved this paper. However, the opinions expressed in this paper are solely those of the author.

Type of the article: Research Article

Abstract
Amid escalating climate challenges, examining how financial innovation affects sustainable growth in Sub-Saharan Africa (SSA) while informing stronger environmental and financial policy design is a critical priority in environmental management. This study investigates the impact of green finance on green growth in SSA, emphasizing the moderating role of FinTech. Using panel data for 35 countries from 2000 to 2021, it applies the System-GMM estimator to address endogeneity. The results show that green finance significantly promotes green growth at the 1% level. FinTech also plays a critical role, both directly and by enhancing the effectiveness of green finance. Specifically, 1% increase in green finance and FinTech is associated with 5.63 % and 7.62 % gains in green growth, respectively, while their interaction yields an additional 0.22 % increase. The findings highlight the importance of policies that expand green finance through robust regulatory frameworks, innovative financial instruments, carbon pricing mechanisms, and the development of voluntary carbon markets. Leveraging FinTech can further support green investment by improving financial inclusion, lowering transaction costs, and increasing transparency. Strengthening human capital, particularly through environmental education, is essential to support sustainable practices. Besides, greater financial openness can attract foreign investment into green sectors. These measures can help policymakers foster sustainable growth, enhance climate resilience, and advance long-term environmental objectives in the region.