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Energy consumption and economic development in Sub-Sahara Africa

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  • Kebede, Ellene
  • Kagochi, John
  • Jolly, Curtis M.
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    Abstract

    Sub-Saharan African countries' economic development is dependent on energy consumption. This paper assesses total energy demand, which is composed of traditional energy (wood fuel) and commercial energy (electricity and petroleum), in the Central, East, South, and West regions of Sub-Saharan Africa. Cross-sectional time series data for 20 countries in 25Â years are analyzed, and the results of the study show that wood fuel accounts for 70% of energy consumption, followed by petroleum, with most industrial activities utilizing some form of wood fuel. Regression results suggest that energy demand is inversely related to the price of petroleum and industrial development, but positively related to GDP, population growth rate, and agricultural expansion, and that price elasticity is less than one. The model results also show that there are regional differences in energy demand. In addition, the interaction of population growth rates by regions generates mixed results, and there are regional differences in the use of commercial energy consumption, and GDP growth. The findings of this study suggest that countries must diversify their energy sources and introduce energy-efficient devices and equipment at all levels of the economy to improve GDP growth rate and GDP per capita.

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    File URL: http://www.sciencedirect.com/science/article/B6V7G-4YC2XGK-3/2/2b6055bb233d7efe96d306eda8c0d1e5
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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Economics.

    Volume (Year): 32 (2010)
    Issue (Month): 3 (May)
    Pages: 532-537

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    Handle: RePEc:eee:eneeco:v:32:y:2010:i:3:p:532-537

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    Web page: http://www.elsevier.com/locate/eneco

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    Keywords: Energy Development Commercial energy GDP;

    References

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    1. Asafu-Adjaye, John, 2000. "The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries," Energy Economics, Elsevier, vol. 22(6), pages 615-625, December.
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    5. Munisamy Gopinath & P. Lynn Kennedy, 2000. "Agricultural Trade and Productivity Growth: A State-level Analysis," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(5), pages 1213-1218.
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    8. Akinboade, Oludele A. & Ziramba, Emmanuel & Kumo, Wolassa L., 2008. "The demand for gasoline in South Africa: An empirical analysis using co-integration techniques," Energy Economics, Elsevier, vol. 30(6), pages 3222-3229, November.
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    10. Lijesen, Mark G., 2007. "The real-time price elasticity of electricity," Energy Economics, Elsevier, vol. 29(2), pages 249-258, March.
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    Citations

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    Cited by:
    1. Driouchi, Ahmed & Zouag, Nada, 2011. "Local Universities as Engines for Innovation and Regional Development in Southern Economies with Reference to MOROCCO," MPRA Paper 30705, University Library of Munich, Germany.
    2. Zaman, Khalid & Mushtaq Khan, Muhammad & Ahmad, Mehboob, 2013. "Factors affecting commercial energy consumption in Pakistan: Progress in energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 19(C), pages 107-135.
    3. Martha Negash & Jo Swinnen, 2012. "Biofuels and Food Security: Micro-evidence from Ethiopia," LICOS Discussion Papers 31912, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
    4. Jude C. Eggoh & Chrysost Bangaké & Christophe Rault, 2011. "Energy Consumption and Economic Growth Revisited in African Countries," CESifo Working Paper Series 3590, CESifo Group Munich.
    5. Al-mulali, Usama & Binti Che Sab, Che Normee, 2012. "The impact of energy consumption and CO2 emission on the economic and financial development in 19 selected countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4365-4369.
    6. Deichmann, Uwe & Meisner, Craig & Murray, Siobhan & Wheeler, David, 2011. "The economics of renewable energy expansion in rural Sub-Saharan Africa," Energy Policy, Elsevier, vol. 39(1), pages 215-227, January.
    7. Bildirici, Melike, 2012. "Economic Growth and Electricity Consumption in Africa and Asia: MS-VAR and MS-GRANGER Causality Analysis," MPRA Paper 40515, University Library of Munich, Germany.
    8. Collins Okello & Stefania Pindozzi & Salvatore Faugno & Lorenzo Boccia, 2014. "Appraising Bioenergy Alternatives in Uganda Using Strengths, Weaknesses, Opportunities and Threats (SWOT)-Analytical Hierarchy Process (AHP) and a Desirability Functions Approach," Energies, MDPI, Open Access Journal, vol. 7(3), pages 1171-1192, February.
    9. Magazzino, Cosimo, 2011. "Energy consumption and aggregate income in Italy: cointegration and causality analysis," MPRA Paper 28494, University Library of Munich, Germany.
    10. Abila, Nelson, 2014. "Biofuels adoption in Nigeria: Attaining a balance in the food, fuel, feed and fibre objectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 35(C), pages 347-355.
    11. Phetkeo Poumanyvong & Shinji Kaneko & Shobhakar Dhakal, 2012. "Impacts of urbanization on national residential energy use and CO2 emissions: Evidence from low-, middle- and high-income countries," IDEC DP2 Series 2-5, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    12. Abanda, F.H. & Ng’ombe, A. & Keivani, R. & Tah, J.H.M., 2012. "The link between renewable energy production and gross domestic product in Africa: A comparative study between 1980 and 2008," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(4), pages 2147-2153.

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