Energy consumption intensity in Sub-Saharan Africa: Evidence and policies
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Date
2015-04-17
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University of Ghana
Abstract
The aftermath of the 1970 oil price shock coupled with rapid urbanization,
rising population, industrialization and increased environmental
degradation in Sub Saharan Africa (SSA), have necessitated a
shift of emphasis from energy consumption to a thorough investigation into energy consumption intensity. This notwithstanding, the
evidence remains sparse for SSA as literature has not adequately
examined the effects of SSA's economic growth process on energy
intensity in the region and this is what the study addresses using a
panel dataset from 1980-2010 covering 36 SSA countries. A system
Generalized Method of Moment (GMM) estimation confirmed the
existence of a U-shaped economic growth-energy consumption
intensity nexus in SSA. Additionally, both urbanization and industrialization
are found to increase energy consumption intensity while the
contrary existed for FDI and trade. Inflation was not found to include
the drivers of energy consumption intensity. Against these we discuss
some policy options.
Description
School of social sciences colloquium
Keywords
Sub Saharan Africa (SSA), energy consumption, Generalized Method of Moment (GMM), urbanization, Inflation