Energy Consumption and Economic Growth Revisited in African Countries

By Jude C. Eggoh, Chrysost Bangake, Christophe Rault. Social Science Research Network, 2011

270 citations recorded by the source corpus.

The aim of this paper is to provide new empirical evidence on the relationship between energy consumption and economic growth for 21 African countries over the period from 1970 to 2006, using recently developed panel cointegration and causality tests. The countries are divided into two groups: net energy importers and net energy exporters. It is found that there exists a long-run equilibrium relationship between energy consumption, real GDP, prices, labor and capital for each group of countries as well as for the whole set of countries. This result is robust to possible cross-country dependence and still holds when allowing for multiple endogenous structural breaks, which can differ among countries. Furthermore, we find that decreasing energy consumption decreases growth and vice versa, and that increasing energy consumption increases growth, and vice versa, and that this applies for both energy exporters and importers. Finally, there is a marked difference in the cointegration relationship when country groups are considered.

Subfields: Economics and Econometrics, Pollution, Renewable Energy, Sustainability and the Environment

View Paper: https://www.semanticscholar.org/paper/0031b083bf8ea248deb6a59574cbc96057e3ac09

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Citations in the corpus

The causal relationship between energy consumption and economic growth in Lebanon (2012, background): “The main trend tends to be a bivariate analysis; the two variables being energy consumption and gdp (see, inter alia, Altinay and Karagol, 2004; Ghosh, 2002; Soytas and Sari, 2003; Yoo, 2005). Bivariate models are especially attractive in that they can be used for countries that suffer from a comple”
Energy consumption and economic growth in the light of meeting the targets of energy policy in the EU (2014, background): “Another criterion was the geographic location (e.g., African countries (Eggoh et al., 2011), Central American countries (Apergis and Payne, 2009a), South American countries (Apergis and Payne, 2010), MENA (Ozturk and Acaravci, 2011), SAARC (Mudakkar et al., 2013), CIS (Apergis and Payne, 2009b),…”
The impact of renewable energy consumption and environmental sustainability on economic growth in Africa (2021, background): “Eggoh et al. (2011), and Ahmed and Shimada (2019) also found a significant long-run relationship between renewable energy consumption and economic growth, not just in Africa, but also in South Asia and other Asian countries.”
Renewable and non-renewable energy consumption and economic growth relationship revisited: Evidence from G7 countries (2012, background): “…Bowden and Payne (2009), and Apergis and Payne (2010b) proved the validity of the growth hypothesis; Apergis and Payne (2010a), Belke et al. (2011), Eggoh et al. (2011), Fuinhas and Marques (2011), and Kaplan et al. (2011) proved the validity of the feedback hypothesis; Lise and Montfort (2007)…”
Energy consumption, CO2 emissions and economic growth: an ethical dilemma (2017, background): “), although some studies disentangle the energy usage by energy source, such as, electricity, coal, nuclear and renewables (see, for example, Chiou-Wei et al., 2008; Akinlo, 2009; Apergis and Payne, 2009b; Ghosh, 2009; Eggoh et al., 2011; Chu and Chang, 2012; Dagher and Yacoubian, 2012; Abbas and Ch”
Economic Complexity and Ecological Footprint: Evidence from the Most Complex Economies in the World (2020, background): “(2011) [82] used them in support of evidence regarding the relationship between energy consumption and economic growth for 21 African countries.”
Renewable and non-renewable energy consumption and economic activities: Further evidence from OECD countries (2014, background): “These studies include Apergis and Payne (2010a), Belke et al. (2011), Eggoh et al. (2011), Fuinhas and Marques (2012), and Kaplan et al. (2011).”