Purpose The purpose of this paper is to assess how the Economic Community of West African States (ECOWAS) renewable energy policy (EREP) affects energy intensity using the difference-in-difference (DID) and the propensity score matching methods (PSM). Based on the current debates on renewable energy policies (REP) and due to the fact that energy efficiency has been a challenge for ECOWAS member states. The authors set up a framework to assess the EREP effect on energy intensity. Design/methodology/approach Using the DID and PSM approaches the paper assesses the effect of EREP on energy intensity. The following three different paths are considered: Path 1 tests the EREP effect on electricity access. Path 2 tests the use of renewable energy sources as a factor to enhance the energy intensity. Path 3 tests whether or not use of renewable energy deployment has the potential to raise the total percentage of primary energy supply. The principle is to investigate if and to what extend the EREP increases the energy intensity. Findings The results indicate that EREP has a significantly positive effect on increasing the percentage of energy intensity in ECOWAS member states that has implemented the policy, resulting for a large percentage of the population to electricity access in treated groups. Empirical estimation results largely corroborate the three paths’ hypotheses. The result indicated that the EREP has increased the percentage of electricity access throughout the region. Originality/value The paper explores a more appropriate framework to examine the effect of EREP and enriches the literature on the impact of REP by combining a policy evaluation approach (PSM-DID) method. This paper is the first to the knowledge to estimate the EREP effect by using a non-parametric approach. The majority of previous studies have focused on using case studies, exploratory analysis approaches and econometric methods.
This paper studies Economic Community of West African States (ECOWAS) economic growth and renewable energy consumption (REC) dynamic relation over the period of 2002 to 2016. This study conducts an empirical analysis using Autoregressive Distributed Lag- Bounds approach (ARDL) and VECM based on Granger causality. The results show that renewable energy consumption has significant and positive impact on economic growth; also show unidirectional Granger Causality from renewable energy consumption and the percentage of electricity access to economic growth. In addition, findings indicate bidirectional Granger causality between economic growth and carbon dioxide emission. Moreover our findings indicate that REC increase by 1 per cent leads to 0.009 increases in Real GDP in long run. Therefore, REC can play an important role to ensure sustainable development in the ECOWAS. However, further investments and policies to promote renewable energy consumption are required to enhance sustainable development the region.
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