Conference Paper
Fueling a Sustainable Future: The Impact of Financial Inclusion on Green Energy Transition Among Micro- and Small-Sized Firms in Egypt
No.
ERF32AC_24
Publisher
ERF
Date
May, 2026
Topic
Q4. Energy
O1. Economic Development
This study investigates the role of financial inclusion in driving clean energy adoption among 1,002 Egyptian micro and small enterprises (MSEs) using quasi-experimental methods. Results show that financial inclusion significantly boosts MSEs’ intention to use clean energy technologies (8–12% increase) and willingness to pay (WTP; 9–11% increase). Causal mediation analysis reveals that financial inclusion enhances adoption and WTP primarily through direct effects, with behavioural intention and awareness as mediators. The total effect on adoption intention reaches 12%, with behavioural intention factors, notably perceived usefulness and ease of use, mediating approximately 2%. The total effect on WTP is approximately 9%, with indirect effects mediated through behavioural intention ranging from 1% to 3%. Awareness of renewable and clean energy further amplifies these effects, contributing 9–12% to total effects. Theoretically, the findings elucidate how financial resources shape psychological and informational drivers of energy adoption, extending theoretical models of technology acceptance. The results advocate for integrated strategies that combine financial access, behavioural interventions, awareness campaigns, and targeted incentives such as subsidies and low-interest loans to overcome behavioural and informational barriers, and foster a sustainable energy transition among MSEs.
Authors
Emmanuel Orkoh
Postdoctoral Researcher, Nordic Africa Institute, Uppsala University
Research Fellows
Assem Abu Hatab
Professor of Development Economics, Nordic Africa Institute...