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Energy Prices, Income and Electricity Consumption in Africa: The Role of Technological Innovation

Author

Listed:
  • Taiwo Owoeye

    (Department of Economics, Ekiti State University, Ado-Ekiti, Ekiti-State, Nigeria,)

  • Dayo Benedict Olanipekun

    (Department of Economics, Ekiti State University, Ado-Ekiti, Ekiti-State, Nigeria,)

  • Akindele John Ogunsola

    (PhD Candidate, School of Accounting, Economics and Finance, University of KwaZulu-Natal, Westville Campus, Durban, South Africa,)

  • Augustine Adebayo Kutu

    (School of Accounting, Economics and Finance, University of KwaZulu-Natal, Westville Campus, Durban, South Africa)

Abstract

In this paper, we examine an extended model of the determinants of electricity consumption to include the effect of technological innovation represented by the number of patent and trademark registered. The study focused on 35 African countries from 2009 to 2018 based on availability of records on patent and trademark registration. Both the one and two-step system generalized method of moments were explored to estimate the empirical model. The models were estimated in five different categories to properly account for the behaviour of technological innovation and other determinants of electricity consumption. It was revealed that technological innovation has an insignificant effect on electricity consumption in Africa. However, other variables of interest affected electricity consumption in diverse ways; while per capita income and population growth have positive and significant effect on electricity consumption, energy price and FDI inflows exhibit a negative and significant effect on electricity consumption. The results suggest that technological innovation has not promoted energy efficiency in Africa possibly due to weak innovative capabilities of African countries. Hence government effort should be geared towards improving innovative technology in the region.

Suggested Citation

  • Taiwo Owoeye & Dayo Benedict Olanipekun & Akindele John Ogunsola & Augustine Adebayo Kutu, 2020. "Energy Prices, Income and Electricity Consumption in Africa: The Role of Technological Innovation," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 392-400.
    • Handle: RePEc:eco:journ2:2020-05-45
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    Citations

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    Cited by:

    1. Chen, Maozhi & Sinha, Avik & Hu, Kexiang & Shah, Muhammad Ibrahim, 2021. "Impact of technological innovation on energy efficiency in industry 4.0 era: Moderation of shadow economy in sustainable development," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    2. Nor Salwati Othman & Nurul Hezlin Mohamed Hariri, 2021. "Estimating the Causality and Elasticities of Residential Electricity Consumption for Malaysia," International Journal of Energy Economics and Policy, Econjournals, vol. 11(6), pages 335-346.
    3. Wang, Jun & Ghosh, Sudeshna & Olayinka, Olohunlana Aminat & Doğan, Buhari & Shah, Muhammad Ibrahim & Zhong, Kaiyang, 2022. "Achieving energy security amidst the world uncertainty in newly industrialized economies: The role of technological advancement," Energy, Elsevier, vol. 261(PB).
    4. Amoako, Samuel & Andoh, Francis Kwaw & Asmah, Emmanuel Ekow, 2023. "Technological advancement, sectoral growth, and electricity consumption in Ghana," Energy, Elsevier, vol. 263(PB).

    More about this item

    Keywords

    Technological Innovation; Energy price; Electricity consumption; GDP per capita; System Generalized Method of Moments;
    All these keywords.

    JEL classification:

    • O30 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - General
    • O34 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Intellectual Property and Intellectual Capital
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General

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