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Renewable Energy Consumption, Poverty Alleviation and Economic Growth Nexus in South Africa: ARDL Bounds Test Approach

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  • Hlalefang Khobai

    (Department of Economics, North-West University, South Africa.)

Abstract

This study examines the relationship between renewable energy consumption, poverty alleviation and economic growth in South Africa. The paper applies the Autoregressive distributed lag (ARDL) model to examine the long run relationship and the Vector Error Correction Model (VECM) to determine the direction of causality between the variables. Quarterly data is used for the period 1990 2018. The findings of the paper established a presence of a long run relationship between renewable energy consumption, poverty, economic growth, financial development and government expenditure. Specifically, renewable energy consumption and economic growth have a negative and significant impact on poverty in both long run and short run. The VECM suggest that renewable energy consumption Granger-causes both economic growth and poverty in the long. Moreover, there is a bidirectional causality flowing between poverty and economic growth. The results have important implication for renewable energy policy makers as it can be realised that policies that promote adoption of clean technology will alleviate poverty in South Africa.

Suggested Citation

  • Hlalefang Khobai, 2021. "Renewable Energy Consumption, Poverty Alleviation and Economic Growth Nexus in South Africa: ARDL Bounds Test Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 11(5), pages 450-459.
    • Handle: RePEc:eco:journ2:2021-05-51
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    Cited by:

    1. Hlongwane, Nyiko Worship & Daw, Olebogeng David & Sithole, Mixo Sweetness, 2023. "Renewable electricity generation and government expenditure on economic growth of South Africa and Botswana," MPRA Paper 116497, University Library of Munich, Germany, revised 24 Feb 2023.
    2. Mohammad Sulieman Mohammad Jaradat, 2022. "The Role of Renewable Energy Investment on Achieving Economic Growth at the Gulf Cooperation Council Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 349-354.
    3. Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Electricity Trade and Economic Growth in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 355-364, September.
    4. Zhengxin Li & Md. Qamruzzaman, 2023. "Nexus between Environmental Degradation, Clean Energy, Financial Inclusion, and Poverty: Evidence with DSUR, CUP-FM, and CUP-BC Estimation," Sustainability, MDPI, vol. 15(19), pages 1-31, September.
    5. Qianyi Li & Md Qamruzzaman, 2023. "Innovation-Led Environmental Sustainability in Vietnam—Towards a Green Future," Sustainability, MDPI, vol. 15(16), pages 1-34, August.

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    More about this item

    Keywords

    Renewable energy consumption; poverty alleviation; economic growth; South Africa;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q42 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Alternative Energy Sources
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development

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