IDEAS home Printed from https://ideas.repec.org/p/iza/izadps/dp8296.html
   My bibliography  Save this paper

Exploring the Causality Links between Energy and Employment in African Countries

Author

Listed:
  • Arouri, Mohamed El Hedi

    (EDHEC Business School)

  • Ben-Youssef, Adel

    (University of Nice Sophia-Antipolis)

  • M'henni, Hatem

    (University of Manouba)

  • Rault, Christophe

    (University of Orléans)

Abstract

Using a bootstrap panel analysis that allows for cross-country dependence, without requiring the use of pre-tests for a unit root, we study the causality links between energy use and employment for a sample of 16 African countries over the 1991-2010 period (according to availability of countries' data) in a panel Vector AutoRegressive model. Our results indicate that employment and energy use are strongly linked in Africa. Unidirectional causality from employment to energy use in Tunisia, Cameroun, Zambia and Ethiopia is found. A unidirectional causality from energy use to employment is found in DRC and Egypt. We found also bidirectional causality for Algeria, Benin, Kenya, Mozambique and Tanzania). However, our estimates did not indicate any causality in Big African players like South Africa, Nigeria, Morocco, Ghana and Senegal.

Suggested Citation

  • Arouri, Mohamed El Hedi & Ben-Youssef, Adel & M'henni, Hatem & Rault, Christophe, 2014. "Exploring the Causality Links between Energy and Employment in African Countries," IZA Discussion Papers 8296, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp8296
    as

    Download full text from publisher

    File URL: https://docs.iza.org/dp8296.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Blazejczak, Jürgen & Braun, Frauke G. & Edler, Dietmar & Schill, Wolf-Peter, 2014. "Economic effects of renewable energy expansion: A model-based analysis for Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1070-1080.
    2. Phillips, Peter C B, 1995. "Fully Modified Least Squares and Vector Autoregression," Econometrica, Econometric Society, vol. 63(5), pages 1023-1078, September.
    3. Angus J. Winchester & Della Hooke & Mike Parker Pearson & N. James & Bill Britnell & Edith Evans & Ian Dormor & Andy Wigley & Tom Williamson & Peter Herring & David Stone & Brian Rich & Barbara Englis, 2013. "Reviews," Landscape History, Taylor & Francis Journals, vol. 34(1), pages 91-116, May.
    4. Robert B. Barsky & Lutz Kilian, 2004. "Oil and the Macroeconomy Since the 1970s," Journal of Economic Perspectives, American Economic Association, vol. 18(4), pages 115-134, Fall.
    5. Yannick L'horty & Christophe Rault, 2004. "Inflation, minimum wage and other wages: an econometric study on French macroeconomic data," Applied Economics, Taylor & Francis Journals, vol. 36(4), pages 277-290.
    6. Stephen Smith, 1992. "Taxation and the environment: a survey," Fiscal Studies, Institute for Fiscal Studies, vol. 13(4), pages 21-57, January.
    7. Laitner, Skip & Bernow, Stephen & DeCicco, John, 1998. "Employment and other macroeconomic benefits of an innovation-led climate strategy for the United States," Energy Policy, Elsevier, vol. 26(5), pages 425-432, April.
    8. Mohamed El Hedi Arouri & Adel Ben Youssef & Hatem M'Henni & Christophe Rault, 2014. "Energy use and economic growth in Africa: a panel Granger-causality investigation," Economics Bulletin, AccessEcon, vol. 34(2), pages 1247-1258.
    9. Yannick L'horty & Christophe Rault, 2003. "Why Is French Equilibrium Unemployment So High?," Journal of Applied Economics, Universidad del CEMA, vol. 6, pages 127-156, May.
    10. Erol, Umit & Yu, Eden S. H., 1990. "Spectral analysis of the relationship between energy consumption, employment, and business cycles," Resources and Energy, Elsevier, vol. 11(4), pages 395-412, March.
    11. L'Horty, Yannick & Rault, Christophe, 2003. "Why Is French Equilibrium Unemployment So High? An Estimation of the WS-PS Model," Journal of Applied Economics, Universidad del CEMA, vol. 6(1), pages 1-30, May.
    12. Lehr, Ulrike & Lutz, Christian & Edler, Dietmar, 2012. "Green jobs? Economic impacts of renewable energy in Germany," Energy Policy, Elsevier, vol. 47(C), pages 358-364.
    13. Frondel, Manuel & Ritter, Nolan & Schmidt, Christoph M. & Vance, Colin, 2010. "Economic impacts from the promotion of renewable energy technologies: The German experience," Energy Policy, Elsevier, vol. 38(8), pages 4048-4056, August.
    14. Lambert, Rosebud Jasmine & Silva, Patrícia Pereira, 2012. "The challenges of determining the employment effects of renewable energy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(7), pages 4667-4674.
    15. T. S. Breusch & A. R. Pagan, 1980. "The Lagrange Multiplier Test and its Applications to Model Specification in Econometrics," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(1), pages 239-253.
    16. Bovenberg, A. Lans & Goulder, Lawrence H., 2002. "Environmental taxation and regulation," Handbook of Public Economics, in: A. J. Auerbach & M. Feldstein (ed.), Handbook of Public Economics, edition 1, volume 3, chapter 23, pages 1471-1545, Elsevier.
    17. Simas, Moana & Pacca, Sergio, 2014. "Assessing employment in renewable energy technologies: A case study for wind power in Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 31(C), pages 83-90.
    18. Andersen, Thomas Barnebeck & Dalgaard, Carl-Johan, 2013. "Power outages and economic growth in Africa," Energy Economics, Elsevier, vol. 38(C), pages 19-23.
    19. repec:bla:scandj:v:99:y:1997:i:1:p:45-49 is not listed on IDEAS
    20. Tsangyao Chang & Wenshwo Fang & Li-Fang Wen, 2001. "Energy consumption, employment, output, and temporal causality: evidence from Taiwan based on cointegration and error-correction modelling techniques," Applied Economics, Taylor & Francis Journals, vol. 33(8), pages 1045-1056.
    21. Benjamin S. Cheng, 1998. "Energy Consumption, Employment and Causality in Japan: A Multivariate Approach," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 33(1), pages 19-29, January.
    22. Hillebrand, Bernhard & Buttermann, Hans Georg & Behringer, Jean Marc & Bleuel, Michaela, 2006. "The expansion of renewable energies and employment effects in Germany," Energy Policy, Elsevier, vol. 34(18), pages 3484-3494, December.
    23. Narayan, Paresh Kumar & Smyth, Russell, 2005. "Electricity consumption, employment and real income in Australia evidence from multivariate Granger causality tests," Energy Policy, Elsevier, vol. 33(9), pages 1109-1116, June.
    24. Wei, Max & Patadia, Shana & Kammen, Daniel M., 2010. "Putting renewables and energy efficiency to work: How many jobs can the clean energy industry generate in the US?," Energy Policy, Elsevier, vol. 38(2), pages 919-931, February.
    25. Akarca, Ali T. & Long, Thomas II, 1979. "Energy and employment: a time-series analysis of the causal relationship," Resources and Energy, Elsevier, vol. 2(2-3), pages 151-162.
    26. Çetin, Müjgan & Eğrican, Nilüfer, 2011. "Employment impacts of solar energy in Turkey," Energy Policy, Elsevier, vol. 39(11), pages 7184-7190.
    27. van der Zwaan, Bob & Cameron, Lachlan & Kober, Tom, 2013. "Potential for renewable energy jobs in the Middle East," Energy Policy, Elsevier, vol. 60(C), pages 296-304.
    28. SHI, Xiaoping & HEERINK, Nico & QU, Futian, 2009. "The role of off-farm employment in the rural energy consumption transition -- A village-level analysis in Jiangxi Province, China," China Economic Review, Elsevier, vol. 20(2), pages 350-359, June.
    29. Böhringer, Christoph & Keller, Andreas & van der Werf, Edwin, 2013. "Are green hopes too rosy? Employment and welfare impacts of renewable energy promotion," Energy Economics, Elsevier, vol. 36(C), pages 277-285.
    30. Yu, Eden S. H. & Jin, Jang C., 1992. "Cointegration tests of energy consumption, income, and employment," Resources and Energy, Elsevier, vol. 14(3), pages 259-266, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:ipg:wpaper:2014-546 is not listed on IDEAS
    2. Zied Ftiti & Aviral Tiwari & Amél Belanès, 2014. "Tests of Financial Market Contagion: Evolutionary Cospectral Analysis V.S. Wavelet Analysis," Working Papers 2014-62, Department of Research, Ipag Business School.
    3. repec:ipg:wpaper:2014-481 is not listed on IDEAS
    4. repec:ipg:wpaper:2014-502 is not listed on IDEAS
    5. Muhammad Azam & Faisal Khan & Khalid Zaman & Amran Md. Rasli, 2016. "Military Expenditures and Unemployment Nexus for Selected South Asian Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 127(3), pages 1103-1117, July.
    6. repec:ipg:wpaper:2014-486 is not listed on IDEAS
    7. repec:ipg:wpaper:2014-523 is not listed on IDEAS
    8. repec:ipg:wpaper:2014-518 is not listed on IDEAS
    9. repec:ipg:wpaper:2014-535 is not listed on IDEAS
    10. repec:ipg:wpaper:2014-545 is not listed on IDEAS
    11. repec:ipg:wpaper:2014-495 is not listed on IDEAS
    12. Hanif, Abu & Salah Uddin, Muhammad & Bakirtas, Tahsin & Kader, Sheikh Abdul, 2023. "Military Expenditure and Unemployment Nexus in Bangladesh," Revista Finanzas y Politica Economica, Universidad Católica de Colombia, vol. 15(1), pages 157-184, January.
    13. repec:ipg:wpaper:2014-549 is not listed on IDEAS

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. repec:ipg:wpaper:2014-475 is not listed on IDEAS
    2. Arvanitopoulos, T. & Agnolucci, P., 2020. "The long-term effect of renewable electricity on employment in the United Kingdom," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    3. Blazejczak, Jürgen & Braun, Frauke G. & Edler, Dietmar & Schill, Wolf-Peter, 2014. "Economic effects of renewable energy expansion: A model-based analysis for Germany," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 1070-1080.
    4. Cameron, Lachlan & van der Zwaan, Bob, 2015. "Employment factors for wind and solar energy technologies: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 160-172.
    5. Ortega, Margarita & Río, Pablo del & Ruiz, Pablo & Thiel, Christian, 2015. "Employment effects of renewable electricity deployment. A novel methodology," Energy, Elsevier, vol. 91(C), pages 940-951.
    6. Luigi Aldieri & Jonas Grafström & Kristoffer Sundström & Concetto Paolo Vinci, 2019. "Wind Power and Job Creation," Sustainability, MDPI, vol. 12(1), pages 1-23, December.
    7. Ina Meyer & Mark Sommer, 2014. "Employment Effects of Renewable Energy Supply – A Meta Analysis. WWWforEurope Policy Paper No. 12," WIFO Studies, WIFO, number 47225, April.
    8. Duscha, Vicki & Fougeyrollas, Arnaud & Nathani, Carsten & Pfaff, Matthias & Ragwitz, Mario & Resch, Gustav & Schade, Wolfgang & Breitschopf, Barbara & Walz, Rainer, 2016. "Renewable energy deployment in Europe up to 2030 and the aim of a triple dividend," Energy Policy, Elsevier, vol. 95(C), pages 314-323.
    9. Mohamed El Hedi Arouri & Adel Ben Youssef & Hatem M'Henni & Christophe Rault, 2014. "Energy use and economic growth in Africa: a panel Granger-causality investigation," Economics Bulletin, AccessEcon, vol. 34(2), pages 1247-1258.
    10. repec:ipg:wpaper:2014-481 is not listed on IDEAS
    11. Stavropoulos, S. & Burger, M.J., 2020. "Modelling strategy and net employment effects of renewable energy and energy efficiency: A meta-regression," Energy Policy, Elsevier, vol. 136(C).
    12. Costantini, Valeria & Crespi, Francesco & Paglialunga, Elena, 2018. "The employment impact of private and public actions for energy efficiency: Evidence from European industries," Energy Policy, Elsevier, vol. 119(C), pages 250-267.
    13. Lehr, Ulrike & Lutz, Christian & Edler, Dietmar, 2012. "Green jobs? Economic impacts of renewable energy in Germany," Energy Policy, Elsevier, vol. 47(C), pages 358-364.
    14. Gulmira Azretbergenova & Beybit Syzdykov & Talgat Niyazov & Turysbekova Gulzhan & Nazira Yskak, 2021. "The Relationship between Renewable Energy Production and Employment in European Union Countries: Panel Data Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 11(3), pages 20-26.
    15. Cartelle Barros, Juan José & Lara Coira, Manuel & de la Cruz López, María Pilar & del Caño Gochi, Alfredo, 2017. "Comparative analysis of direct employment generated by renewable and non-renewable power plants," Energy, Elsevier, vol. 139(C), pages 542-554.
    16. Zerrahn, Alexander, 2017. "Wind Power and Externalities," Ecological Economics, Elsevier, vol. 141(C), pages 245-260.
    17. Wiser, Ryan & Bolinger, Mark & Heath, Garvin & Keyser, David & Lantz, Eric & Macknick, Jordan & Mai, Trieu & Millstein, Dev, 2016. "Long-term implications of sustained wind power growth in the United States: Potential benefits and secondary impacts," Applied Energy, Elsevier, vol. 179(C), pages 146-158.
    18. Dvořák, Petr & Martinát, Stanislav & der Horst, Dan Van & Frantál, Bohumil & Turečková, Kamila, 2017. "Renewable energy investment and job creation; a cross-sectoral assessment for the Czech Republic with reference to EU benchmarks," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 360-368.
    19. Sooriyaarachchi, Thilanka M. & Tsai, I-Tsung & El Khatib, Sameh & Farid, Amro M. & Mezher, Toufic, 2015. "Job creation potentials and skill requirements in, PV, CSP, wind, water-to-energy and energy efficiency value chains," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 653-668.
    20. Christian Lutz & Lisa Becker & Andreas Kemmler, 2021. "Socioeconomic Effects of Ambitious Climate Mitigation Policies in Germany," Sustainability, MDPI, vol. 13(11), pages 1-20, June.
    21. Omri, Emna & Chtourou, Nouri & Bazin, Damien, 2015. "Solar thermal energy for sustainable development in Tunisia: The case of the PROSOL project," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1312-1323.

    More about this item

    Keywords

    growth; energy consumption; employment; VAR;
    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

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:iza:izadps:dp8296. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Holger Hinte (email available below). General contact details of provider: https://edirc.repec.org/data/izaaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.