Energy consumption, human capital investment and economic growth in South Africa: a vector error correction model analysis

Ilesanmi, Kehinde Damilola; Tewari, Devi Datt

doi:10.1111/opec.12094

Cited by 21 publications

(19 citation statements)

References 37 publications

Supporting

Mentioning

Contrasting

Unclassified

Order By: Relevance

“…For South Africa, a similar study is conducted by Ilesanmi and Tewari (2017). The study investigates the dynamic causal relationship between energy consumption, human capital investment and economic growth for the period 1960-2015 employing VECM.…”

Section: Literature Reviewmentioning

confidence: 99%

Effect of Economic Growth, Industrialization, and Urbanization on Energy Consumption in Nigeria: A Vector Error Correction Model Analysis

Ayinde¹,

Çelik²,

Jelilov³

2019

IJEEP

View full text Add to dashboard Cite

Poor energy production and consumption bedevils the state of Nigeria, for which distribution of energy is concentrated in the wealthy and urban middle class with the country's large poor population denied access. The current annual production is very low, and development of the sector is a challenge. Basically, additional infrastructure is needed to increase production which can feasibly be acquired through raising energy prices. However, a rise in price prohibits access to services for a large part of the population. Inability to raise energy production has a substantial impact on individuals and businesses alike. For businesses, frequent power outages bring inefficiency in the production of goods and services, resulting in stunted growth for local companies and discouraging international investors. For individuals, poor energy consumption impacts negatively on living standards. The accumulative effect of poor energy production and consumption over the years can greatly impact on the continent's economic growth and development. Present economic conditions may worsen with high population growth and rising urbanisation, hence, the need for a rapid and intensified strategy for energy development of the nation. Consequently, this study analyses the relationship between energy consumption on the one hand and economic growth, industry growth and urban growth for the nation. Using data for the period 1980-2016, a VEC model is analysed with the Granger causality test, impulse response function and variance decomposition. Using the Johansen cointegration test, one cointegrating relationship is found which led to conducting the vector error correction model (VECM). It is found that a long run causal relationship exists only for gross domestic product (GDP) growth. That is, GDP only possess the correct sign and statistically significant level with the speed of adjustment back to equilibrium at 14%. No short-run causal relationship is observed between energy consumption on the one hand and economic growth, industry growth and urban growth. Only foreign direct investment as a control variable has a bidirectional short-run causal relationship with energy consumption.

show abstract

Section: Literature Reviewmentioning

confidence: 99%

Effect of Economic Growth, Industrialization, and Urbanization on Energy Consumption in Nigeria: A Vector Error Correction Model Analysis

Ayinde¹,

Çelik²,

Jelilov³

2019

IJEEP

View full text Add to dashboard Cite

show abstract

“…Similarly, the evidence on the investment in human capital and energy consumption is inconclusive and is lacking to shed much light on any reductions in resulting emissions (for instance, contrast Diks and Wolski2015,Ilesanmi and Tiwari 2017, Fang andWolski 2017).…”

mentioning

confidence: 99%

Environmental implications of increased US oil production and liberal growth agenda in post -Paris Agreement era

Shahbaz

Kablan

Hammoudeh

et al. 2020

Journal of Environmental Management

View full text Add to dashboard Cite

Contextualising on the internationally low oil prices era and historically high oil production in USA and refusal to honour the commitments under Paris Agreement (COP: 21), this study investigates the role of education, oil prices and natural resources on CO 2 emissions and energy demand in the USA for the period of 1976-2016. In so doing, we employed a bounds testing approach to cointegration which also accounts for the structural breaks. Key findings suggest the presence of a long-run association between underlying variables. The abundance of natural resources and economic growth of the US economy seem to weigh on environmental quality by increasing energy consumption and carbon emissions. Oil prices show a negative association with energy consumption as well as carbon emissions suggesting that a low oil price regime can lead to an increase in carbon emissions and energy consumption. Interestingly, education seems to play an important role by reducing energy consumption and carbon emissions, resultantly improving the US environmental quality. Our findings have profound environmental implications in terms of efforts to tackle climate change and meeting the Paris agreement (COP: 21) ambitions with reality and USA policy stance.

show abstract

“…First, a DR program is very likely to be successful where economic growth rates are higher. Studies have shown that infrastructure investmentincluding investment in energy infrastructureleads to higher economic growth and, in some cases, that growth spurs investment [53][54] [55]. It is thus possible that DR programs are more likely to be implemented, and consequently more likely to be successful, in regions with higher growth rates.…”

Section: Discussionmentioning

confidence: 99%

Assessing the success of electricity demand response programs: A meta-analysis

Srivastava

Passel

Laes³

2018

Energy Research & Social Science

View full text Add to dashboard Cite

This paper conducts a meta-analysis of 32 electricity demand response programs in the residential sector to understand whether their success is dependent on specific characteristics. The paper analyzes several regression models using various combinations of variables that capture the designs of the programs and the socio-economic conditions in which the programs are implemented. The analysis reveals that demand response programs are more likely to succeed in highly urbanized areas, in areas where economic growth rates are high, and in areas where the renewable energy policy is favorable. These findings provide useful guidance in determining where and how to implement future demand response programs.

show abstract

Energy consumption, human capital investment and economic growth in South Africa: a vector error correction model analysis

Cited by 21 publications

References 37 publications

Effect of Economic Growth, Industrialization, and Urbanization on Energy Consumption in Nigeria: A Vector Error Correction Model Analysis

Effect of Economic Growth, Industrialization, and Urbanization on Energy Consumption in Nigeria: A Vector Error Correction Model Analysis

Environmental implications of increased US oil production and liberal growth agenda in post -Paris Agreement era

Assessing the success of electricity demand response programs: A meta-analysis

Contact Info

Product

Resources

About