Assessing the Climate-Economy Nexus: The Impact of Renewable Energy Consumption and Government Expenditure on GDP per Capita in Cameroon

John Carlvin Piyinchu ()

Journal of Climate Policy, 2025, vol. 4, issue 1, 53 - 71

Abstract: Purpose: This study examines the impact of renewable energy consumption and government expenditure on GDP per capita in Cameroon using an Autoregressive Distributed Lag (ARDL) model. Methodology: This study employs a quantitative research design collecting secondary data. The study uses the WDI database, which provides reliable and accurate data on development indicators, including GDP per capita, renewable energy consumption, and government expenditure. The sample size is 35 years (1990-2024) of data on GDP per capita, renewable energy consumption, access to electricity, and general government consumption expenditure in Cameroon. This study employs econometric techniques to analyses the data Findings: The results indicate that renewable energy consumption has a negative and significant impact on GDP per capita in the long run (-65.653%), but a positive and significant impact in the short run (110.081%). Government expenditure, on the other hand, has a positive and significant impact on GDP per capita in the short run (10.526%). The ARDL bounds test results reveal no evidence of a long-run relationship between the variables, suggesting that policymakers should focus on short-term strategies to promote economic growth and development. Unique contribution to theory, practice and policy (recommendations): By focusing on Cameroon's untapped solar and hydro energy potential, the study offers policy recommendations to promote sustainable economic growth and development, contributing to the existing literature on climate-economy relationships in a previously under-researched context. The study recommends increasing government expenditure on infrastructure development and social programs, exploring innovative financial incentives for renewable energy, and prioritizing the development of solar energy projects to promote sustainable economic growth and development in Cameroon. The findings of this study provide valuable insights for policymakers seeking to promote economic growth and development in Cameroon through renewable energy consumption and strategic government expenditure.

Keywords: Renewable Energy Consumption; Government Expenditure; GDP; Per Capita (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:bhx:ojtjcp:v:4:y:2025:i:1:p:53-71:id:2807

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