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The Statistical Relationship between Economic Growth and Total Energy Use: Evidence from Panel Co-integration and Granger-causality Investigation of SSA Countries

Author

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  • Desire Sekanabo

    (African Centre of Excellence in Energy for Sustainable Development, College of Science and Technology, University of Rwanda, Kigali, Rwanda)

  • Elias Nyandwi

    (Centre for Geographic Information Systems and Remote Sensing, University of Rwanda (CGIS-UR), College of Science and Technology, Kigali, Rwanda.)

  • Hakizimana Khan Jean de Dieu

    (African Centre of Excellence in Energy for Sustainable Development, College of Science and Technology, University of Rwanda, Kigali, Rwanda)

  • Valerie M. Thomas

    (H. Milton Stewart School of Industrial and Systems Engineering, and School of Public Policy, Georgia Institute of Technology, USA.)

Abstract

This study analyses the statistical relationship between economic growth and total energy use in Sub Saharan Africa (SAA) member countries in the period between 1989 and 2017. The panel unit root test, panel co-integration test, vector error correction and vector auto regressive Granger Causality/Block Exogeneity Wald Tests are employed. The results are that economic growth in SAA is linked to total energy and total energy is linked to economic growth. The growth in available energy forecasts economic growth which, in turn, forecasts the use of energy in SAA. The bidirectional relationship is further explored for SSA sample countries. The results suggest that economic growth in SSA can be supported by promoting growth in productivity of the energy industries.

Suggested Citation

  • Desire Sekanabo & Elias Nyandwi & Hakizimana Khan Jean de Dieu & Valerie M. Thomas, 2022. "The Statistical Relationship between Economic Growth and Total Energy Use: Evidence from Panel Co-integration and Granger-causality Investigation of SSA Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 12(3), pages 151-160, May.
    • Handle: RePEc:eco:journ2:2022-03-15
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    References listed on IDEAS

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    Cited by:

    1. Mustofa Usman & M. Komarudin & Munti Sarida & Wamiliana Wamiliana & Edwin Russel & Mahatma Kufepaksi & Iskandar Ali Alam & Faiz A.M. Elfaki, 2022. "Analysis of Some Variable Energy Companies by Using VAR(p)-GARCH(r,s) Model : Study From Energy Companies of Qatar over the Years 2015 2022," International Journal of Energy Economics and Policy, Econjournals, vol. 12(5), pages 178-191, September.

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    More about this item

    Keywords

    Panel vector; error correction model; economic growth; Energy use;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • 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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