Despite the importance of cost of capital and expected returns from investing on renewable electricity generation in Africa on one hand and the implications of such investments on economic, social and environmental factors on the other. These concepts are not well understood by non-finance and finance actors respectively. Studies that analyze renewable energy-growth nexus at regional and global level are lacking. Instead, existing studies emphasize on individual countries or panel of countries.

Although the resource curse offers evidence for the national crowding out generated by resource windfalls from mining, subnational crowding is not fully understood. This knowledge gap is problematic because these windfalls should cover the negative externalities that exist in host zones. Additionally, these communities have different fiscal responsibilities due to the mining industry's environmental, economic, and social costs. This article estimates the subnational crowd out of mining windfalls on local tax collection by considering different levels of fiscal responsibility.