Unveiling the energy saving role of banking performance in Sub-Sahara Africa

Amuakwa–Mensah, Franklin; Klege, Rebecca Afua; Adom, Philip Kofi; Amoah, Anthony; Hagan, Edmond

doi:10.1016/j.eneco.2018.07.031

Cited by 41 publications

(15 citation statements)

References 51 publications

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“…In other words, lowering energy intensity promotes energy efficiency. One main drawback of using the energy intensity indicator is that changes in the measure could suggest structural changes in output/production in the economy and not changing technology that leads to improvements in energy efficiency (Amuakwa-Mensah et al 2018;Adom et al 2018). Moreover, the pricing regime could also affect energy intensity in a manner that does not suggest an improvement in energy efficiency.…”

Section: Empirical Modelmentioning

confidence: 99%

“…However, compared with Europe, Asia and the Americas and Caribbean, the financial sector in SSA is not well-developed (Amuakwa-Mensah et al 2018;Green 2013).…”

Section: Introductionmentioning

confidence: 99%

“…In addition, corruption can induce lobbying and restrict energy efficiency stringency (Fredriksson et al, 2004). Amuakwa-Mensah et al (2018) have also argued that the winner-take-all feature that characterizes most democratic governance in SSA has the tendency to create strong interest or pressure groups. 2 Strong interest groups, emerging from ruling parties, can create a 'grandfathering system' as a compensatory scheme to reward their loyalty (Amuakwa-Mensah et al 2018).…”

Section: Introductionmentioning

confidence: 99%

“…Amuakwa-Mensah et al (2018) have also argued that the winner-take-all feature that characterizes most democratic governance in SSA has the tendency to create strong interest or pressure groups. 2 Strong interest groups, emerging from ruling parties, can create a 'grandfathering system' as a compensatory scheme to reward their loyalty (Amuakwa-Mensah et al 2018). For this group, there is a high possibility not to adhere strictly to energy efficiency regulations and still not be punished (for fear of payback during the election period).…”

Section: Introductionmentioning

confidence: 99%

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Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?

2020

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The United Nations Sustainable Development Goal 7 emphasizes the need for economies around the world to double their efforts in energy efficiency improvements. This is because improvements in energy efficiency can trigger economic growth and considered as one of the ‘green’ growth strategies due to its carbon free content. To this end, some empirical studies have investigated the nexus between economic growth and energy efficiency, but the effects of the latter on financial indicators have not been sufficiently studied in the literature, at least in developing economies like Africa. This study examines the effect of energy efficiency improvements on commercial bank profitability under different political regimes (i.e., autocratic and democratic political regimes); something previous literature had neglected. The study uses panel data, consisting of 43 African countries and the simultaneous System Generalized Method of Moments. We found that energy efficiency improvement is more likely to induce higher bank profitability in political institutions with the characteristics of centralization of power compared with those with decentralization of power. Furthermore, for the banking sector, the findings suggest that energy utilization behavior of clients should be included in the loan or credit valuation process. For the government, the agenda of energy efficiency should be aggressively pursued while taking cognizance of creating a political environment that weans itself from a ‘grandfathering’ behavior.

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Section: Empirical Modelmentioning

confidence: 99%

“…However, compared with Europe, Asia and the Americas and Caribbean, the financial sector in SSA is not well-developed (Amuakwa-Mensah et al 2018;Green 2013).…”

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?

2020

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“…Elsewhere, there is a growing body of theoretical and empirical literature on energy efficiency that applies the DEA for several countries or regions; these include the US [45]; China [46][47][48][49]; India [50,51]; Japan [52]; and OECD countries [53,54]. In the African context, there exists a lacuna of energy efficiency studies using the data envelopment analysis approach, although there are some important energy efficiency studies in Africa [2,3,[55][56][57][58]. One limitation of those studies is that they do not consider the different implications among the results with the inclusion and without the inclusion of CO 2 emissions.…”

Section: Introductionmentioning

confidence: 99%

Energy Efficiency Improvement Assessment in Africa: An Integrated Dynamic DEA Approach

Amowine

et al. 2019

Energies

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In Africa, energy plays an important role in the processes of economic and sustainable development. However, inefficiency such as mismanagement of resources constrains productivity. Prior energy efficiency studies in Africa have failed to provide the paths through which energy efficiency improvement can be achieved. The current study aims to assess energy efficiency improvement among 25 selected countries in Africa. First, the dynamic slack-based measure (DSBM) data envelopment analysis (DEA) model is applied to gauge the efficiency measurement. Further, the Malmquist productivity index (MPI) is employed to investigate the energy efficiency improvement during 2006–2014. Empirically, the results from the dynamic slack-based measure (DSBM) model show that energy efficiency in Africa is generally low. Also, the findings from the MPI suggest there is no significant improvement in energy efficiency in Africa. Based on the estimated results, some energy efficiency improvement strategies are further proposed for sample countries in Africa.

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Measuring Dynamic Energy Efficiency in Africa: A Slack‐Based DEA Approach

Amowine

et al. 2020

Energy Science & Engineering

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Sustainable economic prosperity has become a major policy initiative for economies worldwide. To accomplish this objective, it is imperative to reduce CO 2 emissions, which makes attaining sustainable development goals problematic. In this regard, improving economic growth without disastrously hampering the environment is a key factor in the fight against climate change. As such, many nations and multinational organizations have promulgated laudable and sound policy initiatives to achieve CO 2 emission reduction targets. One such policy directive is the reduction of CO 2 emission drastically by the end of the 21st century formulated by the intergovernmental panel on climate change (IPCC) in 1996. 1

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Unveiling the energy saving role of banking performance in Sub-Sahara Africa

Cited by 41 publications

References 51 publications

Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?

Degree of financialization and energy efficiency in Sub-Saharan Africa: do institutions matter?

Energy Efficiency Improvement Assessment in Africa: An Integrated Dynamic DEA Approach

Measuring Dynamic Energy Efficiency in Africa: A Slack‐Based DEA Approach

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