Poverty in Sub-Saharan Africa: The Dynamics of Population, Energy Consumption and Misery Index

This study examines the nexus between financial development and energy consumption/use in Sub-Saharan Africa (SSA) using a panel vector error correction model (VECM), cointegration, and Granger causality tests over the period ranging from 1975 to 2017. The annual panel time-series data generated from the World Bank database were tested for unit-roots processing using both the Levin–Lin–Chu and Im–Pesaran–Shin before proceeding to Johanson cointegration technique, the results of which motivated the choice of adopting the panel VECM rather than panel vector autoregression in the methodology. From the estimation result especially on the variables of interest, there exists a positive and statistically significant relationship between financial development and energy consumption in the long run, but not statistically significant in the short run. Further findings from the panel Granger causality test shows a unidirectional causality running from financial development to energy consumption, gross domestic product per capita, population growth to urbanization with no feedback. Among a series of policy recommendations, the monetary authorities in Sub-Saharan African countries should ensure optimal utilization of financial instruments and technologies available in the system to enhance more robust financial development to boost efficiency in energy consumption in the region in line with the sustainable growth theory.

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Implications of shocks in energy consumption for energy policy in sub-Saharan Africa

Energy & Environment ◽

10.1177/0958305x19882401 ◽

2019 ◽

Vol 31 (6) ◽

pp. 1077-1097 ◽

Cited By ~ 1

Author(s):

Oluwasola E Omoju ◽

Jinkai Li ◽

Jin Zhang ◽

Abdul Rauf ◽

Victor Edem Sosoo

Keyword(s):

Energy Consumption ◽

Energy Policy ◽

Socioeconomic Development ◽

Sub Saharan Africa ◽

Long Term Effects ◽

Policy Makers ◽

Lm Tests ◽

Lm Test ◽

Sub Saharan

Sub-Saharan Africa has the lowest energy consumption per capita in the world, and this has undermined socioeconomic development in the region. The stationarity of energy consumption in the region has important implications for energy policy, forecasting and macroeconomic developments. This paper investigates the stationarity properties of energy consumption in 48 sub-Saharan Africa countries using the Augment Dickey–Fuller, Zivot–Andrews, Clemente–Montanes–Reyes and Lee–Strazicich LM tests. Using the Lee-Strazicich LM test as a benchmark, the study shows that energy consumption is stationary in 41 countries. This implies that energy policy makers should not be concerned about shocks in energy consumption in these countries because the shocks will be temporary and not transmitted to the macroeconomy. Also, energy policies will not have long-term effects. Policies that exert one-time temporary shocks on energy consumption would be more effective in these countries.

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The Causality between Participation in GVCs, Renewable Energy Consumption and CO2 Emissions

Sustainability ◽

10.3390/su12031237 ◽

2020 ◽

Vol 12 (3) ◽

pp. 1237 ◽

Cited By ~ 1

Author(s):

Zhiheng Wu ◽

Guisheng Hou ◽

Baogui Xin

Keyword(s):

Renewable Energy ◽

Energy Consumption ◽

Co2 Emissions ◽

Sub Saharan Africa ◽

Asia Pacific ◽

Pacific Region ◽

Asia Pacific Region ◽

Renewable Energy Consumption ◽

Causal Impact ◽

Sub Saharan

Using the panel vector autoregressive (PVAR) model accompanied by the system-generalized method of moment (System-GMM) approach, this paper investigates the dynamic causality between participation in global value chains (GVCs), renewable energy consumption and carbon dioxide (CO2) emissions throughout 1990–2015 for 172 countries. The results show that participation in GVCs negatively causes renewable energy consumption except for the Middle East and North America (MENA) and sub-Saharan Africa. Second, except for the Asia–Pacific region and globally, participation in GVCs has no causal impact on CO2 emissions, and participation in GVCs has a positive effect on CO2 emissions in the Asia–Pacific region and globally. Third, except for globally and sub-Saharan Africa, CO2 emissions have no causal impact on participation in GVCs; however, CO2 emissions hurt participation in GVCs globally and in the sub-Saharan African region. Forth, renewable energy consumption positively causes participation in GVCs in MENA, while renewable energy consumption does not cause participation in GVCs globally and in other regions. Fifth, there is no causality between CO2 emissions and renewable energy consumption both at the global and regional levels. Several policy implications are proposed and discussed for promoting participation in GVCs and improving the environment.

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