The study examines the relationship between electricity consumption and economic development using an extended neoclassical model for the period 1970-2013. The study incorporates the uniqueness of the Nigerian economy by controlling for the role of institutions, technology, emissions, and economic structure in the electricity consumption-development argument. The study adopted a cointegration analysis based on the Johansen and Juselius (1981) maximum Likelihood approach and a vector error correction model. In order to ensure robustness, the study adopted the wald block endogeneity causality test to ascertain the direction of causal relationship between electricity consumption and economic development. The study found an existence of long-run cointegration equation with electricity consumption inversely related to economic development. Likewise, the vector error correction model failed to reject the null hypothesis of non-convergence in the long-run. Finally, the study found evidence supporting unidirectional causal relationship running from economic development to electricity consumption.
Disclaimer: AFEA Working Papers describe research in progress by the author(s) that has been peer-reviewed and forthcoming in scientific outlets. There is a tacit acknowledgement of anonymous referees for constructive suggestions and critiques that have helped improve the content and rigour of the study. Each research stands on its merit and the views expressed in AFEA Working Papers are those of the author(s) and do not necessarily represent the views of the AFEA, its Executive Board, or AFEA management.
Environmental challenges have enhanced renewed focus on the need to drive the economy in an economically, socially and environmentally sustainable manner; therefore resulting to the emergence of the concept of green economy (GE). In driving the economy towards a green growth path, the pattern of trade and security of energy will play a vital role. Energy (renewable) has been identified as one of the 6 sectors that would provide trade opportunities for export markets in the transition towards a GE, particularly for developing economies, Africa inclusive. This can be done through use of appropriate policies and trade remedies geared towards enhancing the infrastructural and technological capacities of these countries towards the exchange of environmentally friendly goods and services. Through the export of renewable energy such as solar, wind, biofuels, given their abundant supply in Africa; energy security would be achieved with transition to a greener growth path as against a "brown" or ("dirty") growth. From the foregoing, this study explores the components of trade-offs and synergies in relation to trade and security of energy in Africa in the wake of the need for the continent to switch to GE using a sample of 43 selected African countries (2006)(2007)(2008)(2009)(2010)(2011)(2012)(2013).
This study explores the extent to which regional integration can be a viable tool in driving energy sustainability in the Economic Community of West African States (ECOWAS) sub-region of Africa and vice versa. It examines the existing opportunities and the attendant challenges for improved firm productivity in the region through the appraisal of the ECOWAS West African Power Pool. Using three measures of energy sustainability, namely energy security, energy equity and environmental sustainability; the study presents the performance of the ECOWAS sub-region in ensuring regional integration for energy sustainability. The findings from the study reveal, inter alia, that there are prospects and benefits for energy integration for sustainable development in the region. However, even though some progress had been made, there are many challenges. Also, where progress had been made, it is not uniform across the region, though factors such as rising population and political instability could be responsible. It is recommended that the political economy surrounding regional energy integration should be given a priority among member states to ensure that there is positive political will for speedy achievement of set goals. Also, investment in human capital to manage the different projects and maintain the facilities cannot be overemphasized.
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