Income Level and the Energy Consumption-GDP Nexus: Evidence from Sub-Saharan Africa

Mulugeta Kahsai (mkahsai@vsu.edu), Chali Nondo, Peter Schaeffer and Tesfa Gebremedhin (gebrem@mail.wvu.edu)
Additional contact information
Mulugeta Kahsai: Virginia State University Department of Technology
Tesfa Gebremedhin: Division of Resource Management, West Virginia University

Working Papers from Regional Research Institute, West Virginia University

Abstract: This study tests the relationship between energy consumption and economic growth in Sub-Saharan Africa, using a panel co-integration approach. Country-level time series data of energy consumption and economic growth are pooled and used to estimate the model. Sub-Saharan African countries in the sample are classified into low income and middle income countries. The findings support the neutrality hypothesis in the short-run, except for middle income countries, and a strong causation running in both directions is found in the long-run. The different results for low and middle income countries provide evidence of the importance of income level in the causal relationship. This study helps to explain the interdependence of energy consumption and economic growth in Sub-Saharan Africa. Results are critical in formulating sustainable development policies that are geared to the efficient allocation of resources which are expected to increase access to energy services in the study region.

Keywords: energy consumption; economic growth; Sub-Saharan Africa; panel co-integration (search for similar items in EconPapers)
JEL-codes: O13 O55 Q43 (search for similar items in EconPapers)
Pages: 8 pages
Date: 2010
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Citations: View citations in EconPapers (9)

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https://doi.org/10.1016/j.eneco.2011.06.006 (application/pdf)

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Journal Article: Income level and the energy consumption–GDP nexus: Evidence from Sub-Saharan Africa (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:rri:wpaper:2010rp07

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