IDEAS home Printed from https://ideas.repec.org/a/ags/afjecr/339660.html
   My bibliography  Save this article

Energy Consumption and Economic Growth Nexus in East African Sub-Region: Interactive Dynamics of Human Capital

Author

Listed:
  • Mmbaga, Nanzia F.
  • Kulindwa, Yusuph
  • Kazungu, Isaac

Abstract

Human capital is an essential for economic growth and energy consumption. Skills, knowledge, and population health drive innovation and energy utilization. Understanding these factors is vital for addressing contemporary energy challenges and fostering economic development. Therefore, this study focuses on the East African sub-region from 2012 to 2021, exploring how education and health, as proxies for human capital, influence the energy-economic growth nexus. We employed various analytical methods, including Pooled Ordinary Least Squares, Fixed Effects, and the Generalized Method of Moments. Our findings highlight the importance of historical context in shaping present growth policies, as there is a positive association between current and past economic performance. Additionally, higher energy prices negatively affect economic growth, underlining the need for energy price stability. Further, energy consumption appears to negatively impact economic growth. However, when considering life expectancy as a proxy for human capital, this relationship reverses. Improved life expectancy becomes pivotal in shaping energy-growth policies. Our study underscores the critical importance of enhancing life expectancy, maintaining energy price stability, and strategically investing in energy consumption for stable economic growth in East Africa.

Suggested Citation

  • Mmbaga, Nanzia F. & Kulindwa, Yusuph & Kazungu, Isaac, 2023. "Energy Consumption and Economic Growth Nexus in East African Sub-Region: Interactive Dynamics of Human Capital," African Journal of Economic Review, African Journal of Economic Review, vol. 11(5), December.
    • Handle: RePEc:ags:afjecr:339660
    DOI: 10.22004/ag.econ.339660
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/339660/files/Mmbaga.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.22004/ag.econ.339660?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Ridwan Lanre Ibrahim & Omokanmi Olatunde Julius & Ifeoma Chinenye Nwokolo & Kazeem Bello Ajide, 2022. "The role of technology in the non-renewable energy consumption-quality of life nexus: insights from sub-Saharan African countries," Economic Change and Restructuring, Springer, vol. 55(1), pages 257-284, February.
    2. Yang, Mian & Wang, En-Ze & Hou, Yaru, 2021. "The relationship between manufacturing growth and CO2 emissions: Does renewable energy consumption matter?," Energy, Elsevier, vol. 232(C).
    3. Edmore Mahembe & Nicholas Mbaya Odhiambo, 2021. "Does foreign aid reduce poverty? A dynamic panel data analysis for sub-Saharan African countries," The Journal of Economic Inequality, Springer;Society for the Study of Economic Inequality, vol. 19(4), pages 875-893, December.
    4. Kyoji Fukao & Tatsuji Makino & Tokihiko Settsu, 2021. "Human Capital And Economic Growth In Japan: 1885–2015," Journal of Economic Surveys, Wiley Blackwell, vol. 35(3), pages 710-740, July.
    5. Edo, Samson & Osadolor, Nneka Esther & Dading, Isuwa Festus, 2020. "Growing external debt and declining export: The concurrent impediments in economic growth of Sub-Saharan African countries," International Economics, Elsevier, vol. 161(C), pages 173-187.
    6. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    7. Yannick Oswald & Anne Owen & Julia K. Steinberger, 2020. "Publisher Correction: Large inequality in international and intranational energy footprints between income groups and across consumption categories," Nature Energy, Nature, vol. 5(4), pages 349-349, April.
    8. Shahbaz, Muhammad & Raghutla, Chandrashekar & Chittedi, Krishna Reddy & Jiao, Zhilun & Vo, Xuan Vinh, 2020. "The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index," Energy, Elsevier, vol. 207(C).
    9. Muhammad Azam, 2020. "Energy and economic growth in developing Asian economies," Journal of the Asia Pacific Economy, Taylor & Francis Journals, vol. 25(3), pages 447-471, July.
    10. Rahman, Mohammad Mafizur & Velayutham, Eswaran, 2020. "Renewable and non-renewable energy consumption-economic growth nexus: New evidence from South Asia," Renewable Energy, Elsevier, vol. 147(P1), pages 399-408.
    11. Muhammad Kamran Khan & Muhammad Imran Khan & Muhammad Rehan, 2020. "The relationship between energy consumption, economic growth and carbon dioxide emissions in Pakistan," Financial Innovation, Springer;Southwestern University of Finance and Economics, vol. 6(1), pages 1-13, December.
    12. Bernard Sarpong & Edward Nketiah-Amponsah, 2022. "Financial inclusion and inclusive growth in sub-Saharan Africa," Cogent Economics & Finance, Taylor & Francis Journals, vol. 10(1), pages 2058734-205, December.
    13. Yannick Oswald & Anne Owen & Julia K. Steinberger, 2020. "Large inequality in international and intranational energy footprints between income groups and across consumption categories," Nature Energy, Nature, vol. 5(3), pages 231-239, March.
    14. P. Eko Prasetyo & N. Rahayu Kistanti, 2020. "Human capital, institutional economics and entrepreneurship as a driver for quality & sustainable economic growth," Entrepreneurship and Sustainability Issues, VsI Entrepreneurship and Sustainability Center, vol. 7(4), pages 2575-2589, June.
    15. Awolusi D. Olawumi, 2019. "Human Capital Development and Economic Growth in BRICS Countries: Controlling for Country Differences," Journal of Economics and Behavioral Studies, AMH International, vol. 11(4), pages 1-17.
    16. Miguel Angel Esquivias & Lilik Sugiharti & Hilda Rohmawati & Omar Rojas & Narayan Sethi, 2022. "Nexus between Technological Innovation, Renewable Energy, and Human Capital on the Environmental Sustainability in Emerging Asian Economies: A Panel Quantile Regression Approach," Energies, MDPI, vol. 15(7), pages 1-16, March.
    17. Mattia Di Ubaldo & Iulia Siedschlag, 2021. "Investment in Knowledge‐Based Capital and Productivity: Firm‐Level Evidence from a Small Open Economy," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 67(2), pages 363-393, June.
    18. Wang, Juan & Zhang, Sulan & Zhang, Qingjun, 2021. "The relationship of renewable energy consumption to financial development and economic growth in China," Renewable Energy, Elsevier, vol. 170(C), pages 897-904.
    19. T. S. Jayne & Jordan Chamberlin & Rui Benfica, 2018. "Africa’s Unfolding Economic Transformation," Journal of Development Studies, Taylor & Francis Journals, vol. 54(5), pages 777-787, May.
    20. Faheem Gul Gilal & Zubaida Ashraf & Naeem Gul Gilal & Rukhsana Gul Gilal & Nisar Ahmed Channa, 2019. "Promoting environmental performance through green human resource management practices in higher education institutions: A moderated mediation model," Corporate Social Responsibility and Environmental Management, John Wiley & Sons, vol. 26(6), pages 1579-1590, November.
    21. Roman Matousek & Nickolaos G. Tzeremes, 2021. "The asymmetric impact of human capital on economic growth," Empirical Economics, Springer, vol. 60(3), pages 1309-1334, March.
    22. Sumbal Fatima & Bateer Chen & Muhammad Ramzan & Qamar Abbas, 2020. "The Nexus Between Trade Openness and GDP Growth: Analyzing the Role of Human Capital Accumulation," SAGE Open, , vol. 10(4), pages 21582440209, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Trinh, Hai Hong & Sharma, Gagan Deep & Tiwari, Aviral Kumar & Vo, Diem Thi Hong, 2022. "Examining the heterogeneity of financial development in the energy-environment nexus in the era of climate change: Novel evidence around the world," Energy Economics, Elsevier, vol. 116(C).
    2. Khadijah Iddrisu & Isaac Ofoeda & Joshua Yindenaba Abor, 2023. "Inward foreign direct investment and inclusiveness of growth: will renewable energy consumption make a difference?," International Economics and Economic Policy, Springer, vol. 20(3), pages 367-388, July.
    3. Federica Cappelli, 2024. "Unequal contributions to CO2 emissions along the income distribution within and between countries," Working Papers 2024.06, Fondazione Eni Enrico Mattei.
    4. Abraham Deka, 2024. "The role of investment in energy and industry value added in the presence of financial resources in fostering sustainable economic growth of China," SN Business & Economics, Springer, vol. 4(9), pages 1-18, September.
    5. Constantin Anghelache & Mădălina Gabriela Anghel & Ștefan Virgil Iacob & Ion Pârțachi & Irina Gabriela Rădulescu & Alina Gabriela Brezoi, 2023. "Analysis of the Situation of Renewable and Non-Renewable Energy Consumption in the European Union," Energies, MDPI, vol. 16(3), pages 1-15, January.
    6. Cappelli, Federica, 2024. "Unequal contributions to CO2 emissions along the income distribution within and between countries," FEEM Working Papers 341641, Fondazione Eni Enrico Mattei (FEEM).
    7. Georgeta Soava & Anca Mehedintu, 2023. "Final Energy Consumption—Growth Nexus in Romania Versus the European Union: A Sectoral Approach Using Neural Network," Energies, MDPI, vol. 16(2), pages 1-34, January.
    8. Sun, J. & Wen, W. & Wang, M. & Zhou, P., 2022. "Optimizing the provincial target allocation scheme of renewable portfolio standards in China," Energy, Elsevier, vol. 250(C).
    9. Yuru Guan & Jin Yan & Yuli Shan & Yannan Zhou & Ye Hang & Ruoqi Li & Yu Liu & Binyuan Liu & Qingyun Nie & Benedikt Bruckner & Kuishuang Feng & Klaus Hubacek, 2023. "Burden of the global energy price crisis on households," Nature Energy, Nature, vol. 8(3), pages 304-316, March.
    10. Pottier, Antonin, 2022. "Expenditure elasticity and income elasticity of GHG emissions: A survey of literature on household carbon footprint," Ecological Economics, Elsevier, vol. 192(C).
    11. Kristian S. Nielsen & Kimberly A. Nicholas & Felix Creutzig & Thomas Dietz & Paul C. Stern, 2021. "The role of high-socioeconomic-status people in locking in or rapidly reducing energy-driven greenhouse gas emissions," Nature Energy, Nature, vol. 6(11), pages 1011-1016, November.
    12. Huwe, Vera & Steitz, Janek & Sigl-Glöckner, Philippa, 2022. "Kommunale Klimaschutzinvestitionen und deren Finanzierung: Eine Fallstudienanalyse," Papers 277902, Dezernat Zukunft - Institute for Macrofinance, Berlin.
    13. Liang, Longwu & Chen, Mingxing & Zhang, Xiaoping & Sun, Mingxing, 2024. "Understanding changes in household carbon footprint during rapid urbanization in China," Energy Policy, Elsevier, vol. 185(C).
    14. Li, Jiajia & Li, Houjian, 2022. "Spiritual support or living support: Which alleviates solid fuel use for rural households in ethnical minority regions of China?," Renewable Energy, Elsevier, vol. 189(C), pages 479-491.
    15. Elvis D. Achuo & Pilag B.C. Kakeu & Simplice A. Asongu, 2023. "Financial development, human capital and energy transition: A global comparative analysis," Working Papers 23/005, European Xtramile Centre of African Studies (EXCAS).
    16. Lena Kilian & Anne Owen & Andy Newing & Diana Ivanova, 2022. "Exploring Transport Consumption-Based Emissions: Spatial Patterns, Social Factors, Well-Being, and Policy Implications," Sustainability, MDPI, vol. 14(19), pages 1-26, September.
    17. Oluwatosin Adeniyi & Oludele Folarin, 2023. "Industrialisation, Finance, and Urbanisation in Africa," Working Papers of the African Governance and Development Institute. 23/065, African Governance and Development Institute..
    18. Martín Lallana & Adrián Almazán & Alicia Valero & Ángel Lareo, 2021. "Assessing Energy Descent Scenarios for the Ecological Transition in Spain 2020–2030," Sustainability, MDPI, vol. 13(21), pages 1-34, October.
    19. Shady Attia, 2020. "Spatial and Behavioral Thermal Adaptation in Net Zero Energy Buildings: An Exploratory Investigation," Sustainability, MDPI, vol. 12(19), pages 1-15, September.
    20. Dorn, Franziska & Maxand, Simone & Kneib, Thomas, 2024. "The nonlinear dependence of income inequality and carbon emissions: Potentials for a sustainable future," Ecological Economics, Elsevier, vol. 216(C).

    More about this item

    Keywords

    Resource /Energy Economics and Policy;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:afjecr:339660. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://www.ajol.info/index.php/ajer/index .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.