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Consumption and Supply of Electricity on Economic Growth in South Africa: An Econometric Approach

Author

Listed:
  • Sanele Stungwa

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

  • Nyiko Worship Hlongwane

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

  • Olebogeng David Daw

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

Abstract

This study investigates the relationship between electricity consumption and electricity supply on economic growth in South Africa for the period spanning from 1971 to 2014. The importance of this study is to reveal the short run and long run impact of electricity consumption and electricity supply on economic growth in South Africa. The study borrowed annual time series data from the World Bank online secondary source for the period from 1971 to 2014. Empirical results revealed a positive statistically significant short run relationship and a negative statistically insignificant long run relationship between electricity consumption and economic growth. The results further reveal that renewable electricity has a short run negative statistically significant and positive statistically significant long-run relationship with economic growth in South Africa. Based on empirical results, it can therefore be recommended that the policymakers should implement policies that promotes renewable electricity generation and evaluate policies on electricity consumption so that it can significantly boosts economic growth in the long run.

Suggested Citation

  • Sanele Stungwa & Nyiko Worship Hlongwane & Olebogeng David Daw, 2022. "Consumption and Supply of Electricity on Economic Growth in South Africa: An Econometric Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 266-274.
    • Handle: RePEc:eco:journ2:2022-01-33
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    Citations

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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. Nyiko Worship Hlongwane & Mpho Lenoke & Olebogeng David Daw, 2023. "An Analysis of Electricity Generation, Supply, and Economic Growth in Selected SADC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 482-493, November.
    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. Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Renewable Electricity Consumption and Economic Growth: A Comparative Study of South Africa and Zimbabwe," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 197-206, May.
    5. Nyiko Worship Hlongwane & Realeboga Mahapa & Tselane Confidence Nthebe, 2023. "The Nexus between Foreign Direct Investment and Electricity Consumption in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(5), pages 213-220, September.
    6. Samuel David Adebisi & Raymond Osi Alenoghena & Ayobola Olufolake Charles, 2023. "Impact of Energy Supply on Economic Growth in Nigeria," International Journal of Research and Innovation in Social Science, International Journal of Research and Innovation in Social Science (IJRISS), vol. 7(2), pages 959-969, February.
    7. Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Electricity Consumption and Population Growth in South Africa: A Panel Approach," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 374-383, May.
    8. Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2022. "Renewable electricity consumption and economic growth: A comparative study of South Africa and Zimbabwe," MPRA Paper 115154, University Library of Munich, Germany, revised 24 Oct 2022.

    More about this item

    Keywords

    Electricity Consumption; Electricity Supply; Economic Growth; Autoregressive Distributed Lag; South Africa;
    All these keywords.

    JEL classification:

    • C1 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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