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The energy consumption structure and African EMDEs' sustainable development
Hoang Phong Le1,2, Dang Thi Bach Van1
1School of Public Finance, University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu, District 3, Ho Chi Minh City, Viet Nam.
Heliyon
|May 7, 2020
Summary
Both renewable and non-renewable energy consumption drive economic growth in 20 African emerging and developing economies (EMDEs). This study highlights key factors for sustainable development policies in the region.
Area of Science:
- Economics
- Energy Economics
- Sustainable Development
Background:
- Economic growth in African emerging and developing economies (EMDEs) is crucial for sustainable development.
- Understanding the role of energy consumption (both renewable and non-renewable) is vital for policy formulation.
Purpose of the Study:
- To evaluate the impact of renewable power and conventional fuels consumption on economic growth in 20 African EMDEs.
- To identify key drivers for sustainable development in the region.
Main Methods:
- Utilized second-generation econometric techniques for heterogeneous panel data, addressing slope heterogeneity and cross-sectional dependence.
- Applied Westerlund panel-data cointegration test to detect long-term relationships.
- Employed AMG, MG, and CCEMG estimators for long-run estimates and Dumitrescu and Hurlin test for causality analysis.
Main Results:
- Both non-renewable and renewable energy usage significantly foster economic growth in African EMDEs.
- Capital, government expenditure, and trade openness were also found to encourage economic growth.
- Causality analysis confirmed feedback effects between energy consumption, economic growth, and other selected variables.
Conclusions:
- Energy consumption, encompassing both renewable and non-renewable sources, is a significant driver of economic growth in African EMDEs.
- Findings underscore the importance of integrating energy policies with broader economic and development strategies for sustainable progress.
- The study provides critical insights for policymakers aiming to enhance sustainable energy solutions and achieve sustainable development goals in Africa.
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