On the causality and determinants of energy and electricity demand in South Africa: A review

Inglesi‐Lotz, Roula; Pouris, Anastassios

doi:10.1080/15567249.2013.801536

“…(i) Demand for power is strongly associated with economic growth. Despite the direction of the causal link between the two being a controversial question in the literature (Dlamini et al, 2016;Inglesi-Lotz & Pouris, 2016;Eggoh et al, 2011;Louw et al, 2008;Iyke, 2015;Wolde-Rufael, 2006), with some studies pointing at the simultaneous causality hypothesis, and others suggesting a mono-directional or a less clear link, it is acknowledged that a strong correlation exists. Other drivers include population, urbanisation, and employment levels (Ubani, 2013).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Hydropower dependency and climate change in sub-Saharan Africa: A nexus framework and evidence-based review

Falchetta

¹

,

Gernaat

²

,

Hunt

³

et al. 2019

Journal of Cleaner Production

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In sub-Saharan Africa, 160 million grid-connected electricity consumers live in countries where hydropower accounts for over 50% of total power supply. A warmer climate with more frequent and intense extremes could result in supply reliability issues. Here, (i) a robust framework to highlight the interdependencies between hydropower, water availability, and climate change is proposed, (ii) the state-of-the art literature on the projected impacts of climate change on hydropower in sub-Saharan Africa is reviewed, and (iii) supporting evidence on past trends and current pathways of power mix diversification, drought incidence, and climate change projections is provided. We find that only few countries have pursued a diversification strategy away from hydropower over the last three decades, while others' expansion plans will reinforce the dependency. This will occur irrespective of the fact that some of the largest river basins have experienced a significant drying during the last century. Agreement is found on likely positive impacts of climate change on East Africa's hydropower potential, negative impacts in West and Southern Africa, and substantial uncertainty in Central Africa. Irrespective of the absolute change in gross technical potential, more frequent and intense extremes are projected. One possible paradigm to increase resilience and fulfil the pledges of the Paris Agreement is a synergetic planning and management of hydropower and variable renewables.

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“…However, the results on studies between these two variables are inconclusive concerning the nature and direction of causality between energy and economic growth. The differences in authors work concerning energy consumption and economic growth may stem from the time period under consideration, different countries economic growth, the type of analysis and probably the data differences among different countries [15].…”

Section: Brief Literature Reviewmentioning

confidence: 99%

Causality Nexus of Electricity Consumption and Economic Growth: An Empirical Evidence from Ghana

Ameyaw¹,

Oppong²,

Abruquah³

et al. 2017

OJBM

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Electricity plays a crucial role in the economic development of most economies. The causality nexus between electricity consumption and economic growth is important in enacting energy consumption policy and environmental policy. Many researchers have studied the causality between energy consumption and economic growth yet no consensus has emerged. Irrespective of the numerous researches conducted between these two variables, less evidence has been recorded in Ghana. Studies establishing the direction of causality between economic growth and energy consumption have concluded mixed result posing stern threat to Ghana's energy policy. It is therefore viable to investigate the direction of causality between electricity consumption and economic growth in Ghana. This study uses the Cobb-Douglas growth model covering time series data from 1970 to 2014. Vector Error Correction Model was also conducted in order to empirically ascertain the error correction adjustment. Granger Causality test was used to determine the direction of causality between electricity consumption and economic growth and the empirical findings obtained herein reveals that there exists a unidirectional causality running from GDP to electricity consumption. This line of causality obtained from the data supports Growth-LedEnergy Hypothesis. Therefore, it is evident that Ghana is a less energy-dependent economy.

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“…(i) Demand for power is strongly associated with economic growth. Despite the direction of the causal link between the two being a controversial question in the literature (Dlamini et al, 2016;Inglesi-Lotz & Pouris, 2016;Eggoh et al, 2011;Louw et al, 2008;Iyke, 2015;Wolde-Rufael, 2006), with some studies pointing at the simultaneous causality hypothesis, and others suggesting a mono-directional or a less clear link, it is acknowledged that a strong correlation exists. Other drivers include population, urbanisation, and employment levels (Ubani, 2013).…”

Section: Accepted Manuscriptmentioning

confidence: 99%

Hydropower dependency and climate change in sub-Saharan Africa: A nexus framework and evidence-based review

Falchetta

¹

,

Gernaat

²

,

Hunt

³

et al. 2019

Preprint

0

View full text Add to dashboard Cite

In sub-Saharan Africa, 160 million grid-connected electricity consumers live in countries where hydropower accounts for over 50% of total power supply. A warmer climate with more frequent and intense extremes could result in supply reliability issues. Here, (i) a robust framework to highlight the interdependencies between hydropower, water availability, and climate change is proposed, (ii) the state-of-the art literature on the projected impacts of climate change on hydropower in sub-Saharan Africa is reviewed, and (iii) supporting evidence on past trends and current pathways of power mix diversification, drought incidence, and climate change projections is provided. We find that only few countries have pursued a diversification strategy away from hydropower over the last three decades, while others' expansion plans will reinforce the dependency. This will occur irrespective of the fact that some of the largest river basins have experienced a significant drying during the last century. Agreement is found on likely positive impacts of climate change on East Africa's hydropower potential, negative impacts in West and Southern Africa, and substantial uncertainty in Central Africa. Irrespective of the absolute change in gross technical potential, more frequent and intense extremes are projected. One possible paradigm to increase resilience and fulfil the pledges of the Paris Agreement is a synergetic planning and management of hydropower and variable renewables.

show abstract

On the causality and determinants of energy and electricity demand in South Africa: A review

Cited by 41 publications

References 45 publications

Hydropower dependency and climate change in sub-Saharan Africa: A nexus framework and evidence-based review

Hydropower dependency and climate change in sub-Saharan Africa: A nexus framework and evidence-based review

Causality Nexus of Electricity Consumption and Economic Growth: An Empirical Evidence from Ghana

Hydropower dependency and climate change in sub-Saharan Africa: A nexus framework and evidence-based review

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