Modeling the determinants of renewable energy consumption: Evidence from the five most populous nations in Africa

Akintande, Olalekan J.; Olubusoye, Olusanya E.; Adenikinju, Adeola; Olanrewaju, Busayo Temitope

doi:10.1016/j.energy.2020.117992

Cited by 151 publications

(62 citation statements)

References 11 publications

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“…The literature is therefore replete with diverse methodological studies (see 10‐18 ; among others). Recent studies have revolved around the COVID‐19 pandemic, with several papers focusing on examining the impact of the pandemic on commodity markets, especially the energy markets ( 19,20 ; Karaca and Dincer, 2020 16,17,21 ; and Narayan, 2020; among others), and greenhouse gases emission ( 22,23 ; among others).…”

Section: Introductionmentioning

confidence: 99%

An information‐based index of uncertainty and the predictability of energy prices

et al. 2021

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Summary We develop an index of uncertainty, the COVID‐19 induced uncertainty (CIU) index, and employ it to empirically examine the vulnerability of energy prices amidst the COVID‐19 pandemic using a distributed lag model that jointly accounts for conditional heteroscedasticity, autocorrelation, persistence, and structural breaks, as well as day‐of‐the‐week effect. The nexus between energy returns and uncertainty index is analyzed, using daily price returns of eight energy sources (Brent oil, diesel, gasoline, heating oil, kerosene, natural gas, propane, and WTI oil) and four news/information‐based uncertainty proxies [CIU, EPU, Global Fear Index (GFI) and VIX]. The CIU and alternative indexes are used, respectively for the main estimation and sensitivity analysis. We show the outperformance of CIU over alternative news uncertainty proxies in the prediction of energy prices. News (aggregate) and bad news are found to negatively and significantly impact energy returns, while good news has a significantly positive impact. Imperatively, energy variables lack hedging potentials against the uncertainty occasioned by the COVID‐19 pandemic, while we find no strong evidence of asymmetry. Our results are robust to the choice of news variables, forecast horizons employed, with likely sensitivity to energy prices.

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Section: Introductionmentioning

confidence: 99%

An information‐based index of uncertainty and the predictability of energy prices

et al. 2021

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“…Ethiopia can transition to cleaner technologies for energy consumption and ensure energy security when it nips corruption in the bud, establishes rule of law, and makes financing available (Akintande et al, 2020). Together with DRC, Ethiopia has about 61% of Africa's hydro potential on the continent (Olanrewaju et al, 2019).…”

Section: Electricity Supplymentioning

confidence: 99%

“…Nigeria's renewable capacity is 143MW. Nigeria can transition to cleaner technologies by attracting foreign direct investment(FDI), the rule of law, strong regulatory environment (Akintande et al, 2020); in contrast, this transition to cleaner technologies can be hampered by corruption, political instability, and the presence of violence (Akintande et al, 2020).…”

Section: Electricity Supplymentioning

confidence: 99%

Dynamic Role of Renewable Eenrgy to Strengthen Energy Security and Energy Poverty Reduction: Mediating Role of Low Carbon Finance

Tien¹,

Ha²,

Thuan³

et al. 2021

Preprint

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This paper provides an empirical analysis of deploying renewables in Africa's five most populous countries for 2001-2019. It analyzed these factors to see how they impact deploying renewables by employing panel data using the pooled ordinary least squared(OLS) at frim level analysis to increase energy security and to reduce energy poverty. After the analysis, we proved that access to clean fuels and technologies for cooking needs the study countries to deploy renewables as most Africans cook with polluting fuels having detrimental health implications. The analyses further revealed that these countries generate a chunk of their electricity from fossil fuel sources, making it imperative to jettison fossil fuels and embrace renewables cheaper and environmentally friendly. The analysis also showed that the Quality of regulation in a country is vitally important to scaling up renewables in the study countries since the right policy tools underpin the transition. Furthermore, the lack of Electrification is important to developing renewal energy sources in the study countries. Sub-Saharan Africa has about nearly 600 million people not having access to electricity. Thus deploying renewables will bridge the access gap. Cleaner energies will be the panacea to the study countries’ energy insecurity situation and bridge the access gap. The study countries have the technical and theoretical potential for all the renewable energies needed to ensure sustainable consumption. What is needed is to institute cornerstone financial policy de-risking instruments to crowd in private capital since the renewables sector is perceived as a high-risk area.

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“…Renewable energy has been widely regarded as an efficient tool for mitigating climate change and achieving energy security (Akintande et al, 2020 ; Anton & Nucu, 2020 ; Chen & Lin, 2020 ; Ozcan & Ozturk, 2019 ; Steffen et al, 2020 ). Due to the significant decrease in costs of renewable power generation recently (International Renewable Energy Agency, IRENA, 2020 ), global renewable energy consumption (REC) has been growing rapidly, for example, at an annual growth rate of 13.7% over 2008–2018 (British Petroleum Company, BP, 2020 ).…”

Section: Introductionmentioning

confidence: 99%

“…As for the renewable energy supply chain, studies like Fernando et al ( 2018 ) showed that renewable energy supply chain management enables companies to achieve competitiveness in Malaysia. In addition, other studies assessed the determinants of REC (Akintande et al, 2020 ; Wang et al, 2018 ). They found that socioeconomic factors such as population growth and human capital are the main determinants of REC in Africa (Akintande et al, 2020 ) and showed that energy security was the major drivers contributing to REC development in China (Wang et al, 2018 ).…”

Section: Introductionmentioning

confidence: 99%

Drivers and trajectories of China’s renewable energy consumption

Chen

et al. 2021

Ann Oper Res

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Renewable energy is significant for addressing climate change and energy security. This study focused on the drivers of China’s renewable energy consumption (REC) by an extended production-theoretical decomposition analysis and emphasized REC technical efficiency and technological change in 28 provinces during 1997–2017. We then projected China’s REC to 2030 based on nine scenarios using a Monte Carlo simulation approach and specifically considering the impacts of the COVID-19 pandemic on the national economy. The decomposition results showed that economic growth and population scale generally contributed to an increase in REC at national and provincial levels over the period while the overall technical efficiency and technological change in REC played limited roles in prompting REC nationally. The projection results indicated that the target that generates 50% of its electricity from renewable energy sources for China, could be achieved by 2030 if enough actions are taken to accelerate renewable energy development. Finally, we provided policy proposals that support our findings.

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Modeling the determinants of renewable energy consumption: Evidence from the five most populous nations in Africa

Cited by 151 publications

References 11 publications

An information‐based index of uncertainty and the predictability of energy prices

An information‐based index of uncertainty and the predictability of energy prices

Dynamic Role of Renewable Eenrgy to Strengthen Energy Security and Energy Poverty Reduction: Mediating Role of Low Carbon Finance

Drivers and trajectories of China’s renewable energy consumption

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