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Electricity consumption and population growth in South Africa: A panel approach

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  • Hlongwane, Nyiko Worship
  • Daw, Olebogeng David

Abstract

This study investigates the relationship between population growth and electricity consumption in South Africa for the period from 2002 to 2021 collected from StatsSA. The study utilises Seemingly Unrelated Regression model and Dumitrescu and Hurlin (2012) causality tests to analyse the relationship between the variables. Empirical results revealed that there is a negative statistically significant relationship between population growth and electricity consumption in South Africa. The results further reveal one-way causality running from population growth to electricity consumption. The study recommends that the government and policy makers must implement policies aimed at increasing renewable electricity generation to match the gap between electricity demand and growing population thereby reducing constant loadshedding in South Africa.

Suggested Citation

  • Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2022. "Electricity consumption and population growth in South Africa: A panel approach," MPRA Paper 113828, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:113828
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    Cited by:

    1. Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Assessing the Possibility of Medupi and Kusile Providing Enough Electricity Running at Full Capacity in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 28-39, July.
    2. Olusola Olaitan Ayeleru & Joshua Adeniyi Adeniran & Sula Bantubakhona Kwesi Ntsaluba & Lanrewaju Ibrahim Fajimi & Peter Apata Olubambi, 2023. "An Economic Analysis of Energy Consumption at Student Residences in a South African-Based Academic Institution Using NARX Neural Network," Energies, MDPI, vol. 16(2), pages 1-14, January.

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    More about this item

    Keywords

    Electricity consumption; population growth; Seemingly Unrelated Regression (SUR) Model; Eskom; South Africa.;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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