Analysis of the effects of foreign direct investment on the energy transition in Côte d’Ivoire
Publication Date : 18/09/2025
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Résumé :
This study examines the effect of foreign direct investment (FDI) on Côte d’Ivoire’s energy transition from 1990 to 2023 using Full Modified Least Squares (FMOLS). Results show that FDI and business freedom, in the absence of strong environmental regulations, hinder the shift to renewable energies, as investors continue to favor cheaper but more polluting fossil fuels. The negative link between CO₂ emissions and the energy transition confirms the country’s carbon dependence. Interestingly, corruption appears positively associated with the transition, likely reflecting donor-driven renewable projects despite weak institutions. To align FDI with decarbonization goals, Côte d’Ivoire should strengthen environmental laws, set binding carbon targets, and introduce fiscal incentives for clean energy, supported by transparent governance and institutional reforms. Keywords: Renewable Energy, foreign direct investment, Ivory Coast, economic growth
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