Dynamic Relation between Sustainable Development and Renewable Energy Consumption: Evidence from ECOWAS Region

Abstract

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.