Decoupling energy consumption from economic growth in Africa: the role of sectoral energy efficiency and economic structural change

Yang Liu, Weiwei Huang (), Taoyuan Wei () and Brantley Liddle
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Yang Liu: World Bank
Weiwei Huang: Zhejiang Normal University
Taoyuan Wei: CICERO Center for International Climate Research

Economic Change and Restructuring, 2025, vol. 58, issue 4, No 17, 34 pages

Abstract: Abstract This study examines how sectoral energy efficiency and structural economic transformation contribute to reducing energy consumption using decomposition and panel regression methods based on data from 22 African countries between 1990 and 2017. The results reveal that improvements in sectoral energy efficiency and changes in economic structure led to reductions in energy demand by 22% and 18%, respectively, offsetting a projected 20% increase in final energy consumption across the agriculture, industry, and services sectors. Regression analysis further confirms that economic growth is a major driver of total energy consumption and its components—activity scale, efficiency, and structural composition. Additionally, imports were associated with reduced domestic energy use, while exports were linked to increased energy intensity. Other influential factors include urbanization, energy prices, electricity access, renewable energy uptake, and foreign direct investment, with their impacts varying by geography, income group, and oil production status.

Keywords: Energy intensity; Energy efficiency; Economic growth; Structural change; Decomposition; Regression models (search for similar items in EconPapers)
JEL-codes: C33 N57 O13 Q43 (search for similar items in EconPapers)
Date: 2025
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DOI: 10.1007/s10644-025-09908-w

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