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Renewable Energy Consumption and Unemployment in South Africa

Author

Listed:
  • Hlalefang Khobai

    (Department of Economics, Nelson Mandela Metropolitan University, South Africa)

  • Nwabisa Kolisi

    (Nelson Mandela University, Port Elizabeth, South Africa.)

  • Clement Moyo

    (Nelson Mandela University, Port Elizabeth, South Africa.)

  • Izunna Anyikwa

    (Nelson Mandela University, Port Elizabeth, South Africa.)

  • Siyasanga Dingela

    (Nelson Mandela University, Port Elizabeth, South Africa.)

Abstract

The importance of renewable energy consumption has grown to a large extent over the recent years. The benefits of renewable energy consumption ranging from improved environmental quality to higher economic growth are well documented. However, the impact of renewable energy consumption on unemployment has received relatively less attention. This study examines the relationship between renewable energy consumption and unemployment in South Africa over the period 1990-2014. The Autoregressive Distributed Lag (ARDL) model was employed to test the long-run and short-run impacts of renewable energy consumption on unemployment. The results reveal that renewable energy consumption has a negative and significant effect on unemployment in the long-run. However, in the short-run the variables have an insignificant relationship. The study therefore advocates for an increase in the production and consumption of renewable energy in order to boost employment levels.

Suggested Citation

  • Hlalefang Khobai & Nwabisa Kolisi & Clement Moyo & Izunna Anyikwa & Siyasanga Dingela, 2020. "Renewable Energy Consumption and Unemployment in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 10(2), pages 170-178.
    • Handle: RePEc:eco:journ2:2020-02-21
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    Cited by:

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    2. Izunna Chima Anyikwa & Lehlohonolo Domela, 2022. "Asymmetric effects of exchange rate volatility on trade flows in BRICS economies," Studies in Economics and Econometrics, Taylor & Francis Journals, vol. 46(3), pages 224-247, July.
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    5. Kabiru Saidu Musa & Rabiu Maijama’a, 2020. "Causal Relationship between Renewable Energy Consumption and Unemployment in Nigeria: Evidence from Toda and Yamamoto Causality Technique," Energy Economics Letters, Asian Economic and Social Society, vol. 7(1), pages 46-60, June.

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    More about this item

    Keywords

    Renewable energy consumption; unemployment; ARDL; South Africa;
    All these keywords.

    JEL classification:

    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • C50 - Mathematical and Quantitative Methods - - Econometric Modeling - - - General

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