The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL Approach

Hlongwane, Nyiko Worship; Daw, Olebogeng David

doi:10.32479/ijeep.12541

Cited by 6 publications

(8 citation statements)

References 11 publications

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“…The empirical model estimation utilised in the study was adopted from the studies of Khobai and Le Roux (2017), Stungwa et al (2022), Hlongwane and Daw (2021a) and Hlongwane and Daw (2021b). The study modifies this model to suit the study's main objective.…”

Section: Methodsmentioning

confidence: 99%

“…The studies that focused on energy consumption and economic growth in South Africa and Zimbabwe were done by Khobai and Le Roux (2017), Stungwa et al (2022), Hlongwane and Daw (2021a), Ouedraogo (2017), Shahbaz et al (2017), Bekun et al, (2019) and Khobai (2018). However, some of the studies did not focus specifically on renewable electricity consumption but they focused on electricity consumption in general.…”

Section: Introductionmentioning

confidence: 99%

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Renewable Electricity Consumption and Economic Growth: A Comparative Study of South Africa and Zimbabwe

Hlongwane

Daw

2023

IJEEP

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The study conducts a comparative analysis of the relationship between renewable electricity consumption and economic growth in South Africa and Zimbabwe. The study utilises time series data spanning from 1990 to 2019 collected from the World Bank and International Energy Agency (IEA). The study performed the Dickey-Fuller Generalised Least Squares and Phillips-Perron unit root test, ARDL Bounds test for cointegration and optimal lags models. Empirical results revealed that in the short run renewable electricity consumption has a negative impact on economic growth in both countries. In the long run, however, in South Africa it has a negative statistically significant effect in South Africa and a positive statistically insignificant effect in Zimbabwe on economic growth. The study recommends the revision of renewable electricity policies in both countries to boost economic growth significantly in both countries.

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Section: Methodsmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Renewable Electricity Consumption and Economic Growth: A Comparative Study of South Africa and Zimbabwe

Hlongwane

Daw

2023

IJEEP

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“…Analysis by [53] indicates that "real interest rates showed a strong negative long-term correlation but a weakly positive short-term association with economic growth." M2 was shown to have a negative link with the money supply, but M3 showed a positive association over short and long durations.…”

Section: Research Themes a Gross Domestic Productsmentioning

confidence: 99%

Critical Indicators on Macro Economics adoption in GDP: A systematic review

Abdullahi Sule

2024

Econ. entrep.

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The study's goal is to investigate how important macroeconomic factors affect certain African nations. These metrics are crucial for the economies' effective development and can be utilized to address the many economic issues that the chosen countries are currently dealing with. 91 publications published between 2004 and 2022 were examined using the Scopus database. With an emphasis on five major factors: Growth Domestic Product (GDP), Interest Rate, Exchange Rate, Inflation, and Foreign Direct Investment this study evaluated and analyzed the literary elements and themes explored in order to give guidance for future research. The findings revealed that Interest rates, inflation, exchange rates, and foreign direct investment (FDI) are some of the macroeconomic variables that can affect the selected African economies. Foreign direct investment has been identified as the most important factor in improving industrial prosperity and living standards in developing economies such as Nigeria, South Africa, Egypt, Algeria, and Morocco after stabilizing interest rates, inflation and currency exchange rates. The study's findings are supported by material that has been published in previous years. Given that a number of recent economic issues have had an impact on the expansion of the economy, it is necessary to evaluate the ideas using panel data from the past 20 years in order to ascertain whether they are still valid. The report highlights the key macroeconomic factors that may have an impact on five different African economies. The study combines a number of economic metrics that have previously been studied separately to assess the trend in the economies it has chosen. To the best of my knowledge, this study is one of the few that evaluates both the individual countries used and the indicators in general.

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“…Besides empirical literature attesting to the positive impact of renewable energy on economic growth, there is a strand of literature that found the consumption of renewable energy to negatively affect economic growth. For example, Hlongwane and Daw (2022), who examined the relationship between renewable electricity consumption for South Africa as well as Zimbabwe using data of time-series nature covering the 1990-2019 period. Using the ARDL-based methodology, the results of the study found renewable energy to negatively affect economic growth in both countries in the short run.…”

Section: Literature Reviewmentioning

confidence: 99%

“…The lack of consensus on the subject makes it impossible to predetermine whether the influence of renewable energy use on economic growth in Zimbabwe is positive, negative or neutral -calling for a study on Zimbabwe to unravel the relationship between the two variables in the country. The closest there is, is a study by Hlongwane and Daw (2022). However, the study was narrower in scope as it focused on the impact of renewable electricity consumption on economic growth -…”

Section: Introductionmentioning

confidence: 99%

The Dynamic Impact of Renewable Energy Consumption on Economic Growth in Zimbabwe: An ARDL Approach

Nyasha

2024

MGT

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Motivated by the study country’s active involvement in the reduction of global greenhouse gas emissions and the positive strides it has made domestically in increasing renewable energy in its energy mix, on the one hand, and the need to find out whether renewable energy consumption can also assist in reviving the economy, on the other hand, this study empirically examines the dynamic impact of renewable energy consumption on economic growth in Zimbabwe. Using annual time-series data from 1990 to 2019, and the autoregressive distributed lag approach, the results of the study show that in Zimbabwe, renewable energy consumption has apositive impact on economic growth, both in the short and long run. Increasing the usage of renewable energy increases the growth of the economy in the country of study. These results imply that Zimbabwe can achieve two goals using one strategy – increasing renewable energy consumption to decrease the negative impact climate change and greenhouse gas emission have on the environment and the economy, and increasing economic growth. Policy makers in Zimbabwe are, therefore, recommended to supportincreased use of renewable energy over alternative energy sources, as this would have positive implications on the economy, both in the short and long term.

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The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL Approach

Cited by 6 publications

References 11 publications

Renewable Electricity Consumption and Economic Growth: A Comparative Study of South Africa and Zimbabwe

Renewable Electricity Consumption and Economic Growth: A Comparative Study of South Africa and Zimbabwe

Critical Indicators on Macro Economics adoption in GDP: A systematic review

The Dynamic Impact of Renewable Energy Consumption on Economic Growth in Zimbabwe: An ARDL Approach

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