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Institutions and geography: A "two sides of the same coin" story of primary energy use in Sub-Saharan Africa

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  • Laté Ayao Lawson
  • Phu Nguyen-Van

Abstract

Why do coastal located African countries seem more energies consuming? Do institutional and geographical factors matter to energy consumption as in the case of economic growth? Are there any spatial spillovers in primary energy use in Sub-Saharan Africa? To answer these questions which have been surprisingly few addressed in the existing literature, we empirically assess the link between energy use and economic growth in SSA, exploiting spatial data analysis methods. Our empirical results highlight the existence of positive spatial spillovers in primary energy use. We also derive factors (income, population dynamics and urbanization) explaining why coastal located countries are more energy intensive than inland ones. Furthermore, good political institutions encourage energy consumption, connoting a two side of the same coin phenomenon. Globally, our results impel African countries to develop alternative energies strategies and to deploy energy management policies, since increases in the demand for energies and related environmental consequences are expected in a near future.

Suggested Citation

  • Laté Ayao Lawson & Phu Nguyen-Van, 2018. "Institutions and geography: A "two sides of the same coin" story of primary energy use in Sub-Saharan Africa," Working Papers of BETA 2018-27, Bureau d'Economie Théorique et Appliquée, UDS, Strasbourg.
  • Handle: RePEc:ulp:sbbeta:2018-27
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    Keywords

    Energy; institutions; locational and spatial effects; development.;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • O55 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Africa
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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