Carbon dioxide emissions reduction strategies in Kenya: the synergy between renewable energy, technical cooperation grants and the manufacturing industry

Abstract

Purpose The quest to lower global carbon emissions has urged scholars to explore the factors behind the rising carbon emissions. However, there is a dearth of empirical studies on how renewable energy and technical grants moderate the impact of manufacturing on carbon emissions. In this study, the effects of manufacturing, renewable energy and technical grants on per capita carbon emissions, emissions from the transport sector and emissions from the industrial sector are assessed for the economy of Kenya. Design/methodology/approach The study adopted the Stochastic Impacts by Regression on Population, Affluence, and Technology (STIRPAT) model and used time series data from 1990 to 2023. Regression analyses were performed using the Fully Modified Ordinary Least Squares and Canonical Cointegrating Regression methods. Findings It was found that manufacturing growth increases all indicators of carbon footprint. The direct effect of renewable energy and technical grants is negative for per capita carbon emissions. They were also found to moderate the positive impact of manufacturing on carbon emissions. Research limitations/implications Support for renewable energy and the technical and managerial skills development of citizens are essential for reducing carbon emissions. Hence, Kenya should strengthen its partnerships with developed countries and global funding agencies through well-defined cooperation mechanisms, including bilateral and multilateral technical cooperation agreements that focus on clean energy and the exchange of knowledge. Originality/value The study’s value lies in the fact that it explores the role of technical grants in the fight against carbon emissions. It also focuses on the moderating role of renewable energy and technical cooperation grants in the carbon emission effects of the manufacturing sector.