Consumption and Supply of Electricity on Economic Growth in South Africa: An Econometric Approach

Sanele Stungwa, Nyiko Worship Hlongwane and Olebogeng David Daw
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Sanele Stungwa: School of Economics, North-West University, South Africa.
Nyiko Worship Hlongwane: School of Economics, North-West University, South Africa.
Olebogeng David Daw: School of Economics, North-West University, South Africa.

International Journal of Energy Economics and Policy, 2022, vol. 12, issue 1, 266-274

Abstract: This study investigates the relationship between electricity consumption and electricity supply on economic growth in South Africa for the period spanning from 1971 to 2014. The importance of this study is to reveal the short run and long run impact of electricity consumption and electricity supply on economic growth in South Africa. The study borrowed annual time series data from the World Bank online secondary source for the period from 1971 to 2014. Empirical results revealed a positive statistically significant short run relationship and a negative statistically insignificant long run relationship between electricity consumption and economic growth. The results further reveal that renewable electricity has a short run negative statistically significant and positive statistically significant long-run relationship with economic growth in South Africa. Based on empirical results, it can therefore be recommended that the policymakers should implement policies that promotes renewable electricity generation and evaluate policies on electricity consumption so that it can significantly boosts economic growth in the long run.

Keywords: Electricity Consumption; Electricity Supply; Economic Growth; Autoregressive Distributed Lag; South Africa (search for similar items in EconPapers)
JEL-codes: C1 Q41 Q43 (search for similar items in EconPapers)
Date: 2022
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Citations: View citations in EconPapers (8)

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Persistent link: https://EconPapers.repec.org/RePEc:eco:journ2:2022-01-33

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