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Energy Consumption-Economic Growth Nexus: Evidence from Linear and Nonlinear Models in Selected African Countries

Author

Listed:
  • Ibrahim D. Raheem

    (Centre for Petroleum, Energy Economics and Law, University of Ibadan, Nigeria.)

  • Agboola H. Yusuf

    (Department of Economics, University of Ilorin, Nigeria.)

Abstract

In the energy-growth nexus, due to structural change that cannot be accounted for in the linear model this study considers the possibility of the nonlinear model. Using dataset for fifteen countries in Africa for the period 1980-2010, we found that linear model has misspecification error, thus, lending support for the nonlinear model. We provide evidence of inverted U shape in Benin, Cote d Ivoire, Egypt, Togo and Tunisia. This also confirms Environmental Kuznet Curve hypothesis. The low regime of energy consumption (EC) retards growth in Sudan and South Africa, while high regime of EC enhances growth in Algeria, Morocco and Senegal. We also find evidence of neutrality hypothesis in Cameroon and Zambia.

Suggested Citation

  • Ibrahim D. Raheem & Agboola H. Yusuf, 2015. "Energy Consumption-Economic Growth Nexus: Evidence from Linear and Nonlinear Models in Selected African Countries," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 5(2), pages 558-564.
    • Handle: RePEc:eco:journ2:2015-02-21
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Nadeem, Sana & Munir, Kashif, 2016. "Energy Consumption and Economic Growth in Pakistan: A Sectoral Analysis," MPRA Paper 74569, University Library of Munich, Germany.
    2. Raheem Ibrahim Dolapo & Kazeem O. Isah, 2015. "Modelling the nonlinear relationship between co2 emissions and energy consumption: new evidence on the role of economic growth," ECONOMICS AND POLICY OF ENERGY AND THE ENVIRONMENT, FrancoAngeli Editore, vol. 2015(1), pages 59-70.
    3. Marei Elbadri & Salah Bsikre & Osama Alamari & Mehmet Balcilar, 2023. "Nexus between renewable energy consumption, economic growth, and CO2 emissions in Algeria: New evidence from the Fourier‐Bootstrap ARDL approach," Natural Resources Forum, Blackwell Publishing, vol. 47(3), pages 393-412, August.
    4. Md. Nazmus Sadekin & Md. Mahbub Alam & Syed Moudud-Ul-Huq & Mohammad Ghozali Hassan & Tarequl Islam, 2021. "Do Energy Consumption and Environmental Degradation (CO2 Emissions) Matter for Economic Growth? Fresh Evidence from a Developing Economy," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 11(5), pages 289-297.
    5. Mounir Belloumi & Ahmed Aljazea, 2024. "Relationship between Energy and Economic Growth: Evidence from a Panel Nonlinear ARDL Model," International Journal of Energy Economics and Policy, International Journal of Energy Economics and Policy, vol. 14(2), pages 468-476, March.
    6. Muhammad Mehedi Masud & Rulia Akhtar & Sayema Sultana & Sonia Kumari Selvarajan & Abdullah Al‐Mamun, 2024. "Empowering Bangladesh: Illuminating the path to sustainable economic growth: Using a cutting‐edge non‐linear Autoregressive Distributed Lag approach," Natural Resources Forum, Blackwell Publishing, vol. 48(3), pages 838-858, August.
    7. Kouton, Jeffrey, 2019. "The asymmetric linkage between energy use and economic growth in selected African countries: Evidence from a nonlinear panel autoregressive distributed lag model," Energy Economics, Elsevier, vol. 83(C), pages 475-490.
    8. Asongu, Simplice & El Montasser, Ghassen & Toumi, Hassen, 2015. "Testing the Relationships between Energy Consumption, CO2 emissions and Economic Growth in 24 African Countries: a Panel ARDL Approach," MPRA Paper 69442, University Library of Munich, Germany.
    9. Evans Kulu & Alhassan A. Karakara & Isaac Dasmani & Mark Kojo Armah, 2024. "Energy consumption‐economic growth nexus: How does sectorial differentials affects sustainable development?," Natural Resources Forum, Blackwell Publishing, vol. 48(2), pages 616-635, May.

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    Keywords

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    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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