Nonlinear Effects of ICT in the Green Innovation–Green Growth Nexus: Evidence from Selected African Economies

This study investigates how ICT influences the relationship between green innovation and green growth in selected African economies. Despite the recognised importance of green innovation for sustainable development, its impact in Africa is constrained by weak innovation systems, limited digital infrastructure, and institutional inefficiencies. Using panel data for nine African countries from 2000 to 2022, the study employs fixed-effects and interaction-based heterogeneity models to assess the conditioning role of ICT. Green growth is measured using the Green Growth Index, while green innovation is proxied by environment-related technologies. ICT is captured through indicators such as internet usage, mobile subscriptions, and a composite index derived from Principal Component Analysis (PCA), offering a more comprehensive measure of digital development. The findings show that green innovation significantly promotes green growth, with ICT contributing both directly and indirectly. However, results reveal a nonlinear, interaction-based heterogeneity relationship: the positive effect of green innovation is stronger in low-ICT environments and weakens at higher ICT levels. This suggests structural heterogeneity rather than simple complementarity. Institutional quality and renewable energy support green growth, while financial development shows inconsistent effects. The study underscores the need for coordinated context-specific policies aligned with varying ICT development levels across Africa.