Renewable energy for productive manufacturing firms in Cameroon: effect of renewable energy on the productivity of manufacturing firms

Abstract

The objective of this paper is to investigate the effect of renewable energy on the productivity of manufacturing firms in Cameroon. The data used comes from the annual enterprise surveys (EAE) of the National Institute of Statistics (INS) for the 2012–2019 editions. The method used is the two-stage stochastic frontier approach. The results show that renewable energy positively affects the productivity growth of firms. This effect is evaluated at 14.70% for 1% of renewable energy consumed. Despite this positive effect, the productivity growth of these firms remains low over the whole period 21.16%.