Determinants of climate finance mobilization and the moderating role of environmental policy stringency in Sub-Saharan Africa

Abstract

Climate change poses a significant threat to the global community, with Sub-Saharan Africa (SSA) facing disproportionate vulnerability despite its minimal contribution to greenhouse gas emissions. Climate finance has emerged as a crucial tool to address this challenge, yet the mobilisation of climate finance in SSA encounters numerous obstacles, including funding disbursement issues and a lack of understanding regarding investment determinants. This study aims to bridge these gaps by conducting a comprehensive investigation into the determinants of climate finance mobilisation in SSA. Drawing on factors such as geopolitical dynamics, population growth rates, media visibility, and institutional frameworks, the research seeks to shed light on the complexities of climate finance mobilisation. Additionally, it explores how environmental policy stringency moderate’s climate finance mobilisation, offering valuable insights for policymakers and practitioners. Theoretical frameworks of Dependency Theory and Institutional Theory guided the study, providing insights into the socio-economic and institutional factors shaping climate finance mobilisation. Methodologically, the research adopts a comprehensive design incorporating quantitative analysis of secondary data, including multi variate regression analysis and diagnostic tests to explore variable relationships. The study's sample comprises 47 African countries, covering the period from 2015 to 2022, aligning with the ratification of the Paris Agreement. Through its analysis, the research aims to contribute to the literature on climate finance mobilisation while offering practical insights for policymakers and practitioners working to enhance climate-resilient development in SSA. The study reveals that geopolitical factors, media visibility, and ratification of global climate finance initiatives significantly influence the mobilization of climate finance, with media visibility showing the strongest positive impact. Conversely, annual population growth rate shows no significant effect on climate finance mobilization. The interaction of environmental policy stringency with other determinants further enhances the effective mobilization of climate finance. Policymakers should prioritize enhancing media visibility and ratifying international climate agreements to boost climate finance mobilization. Additionally, strengthening environmental policies can amplify the positive impacts of other determinants on climate finance mobilization. Key words: Climate finance mobilization, geopolitical factors, population growth rate, media visibility, environmental policy stringency.