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Carbon Dioxide Emissions from Electricity Power Generation and Economic Growth in South Africa

Author

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  • Nyiko Worship Hlongwane

    (Department of Economics, North-West University, South Africa.)

  • Olebogeng David Daw

    (Department of Economics, North-West University, South Africa.)

Abstract

This study analyses the relationship between CO2 emissions from electricity generation and economic growth in South Africa. The study utilises annual time series data spanning for the period from 1971 to 2014 sourced from the World Bank. The study employs a Vector Error Correction Model (VECM) to analyse the short run and long run relationships. Empirical results revealed that there is a negative statistically insignificant short run relationship and long run negative statistically significant relationship between CO2 emissions and economic growth in South Africa. The Granger causality results revealed noncausal relationship between CO2 and economic growth. The policy implication of this study is that Eskom and policy makers must propose and implement policies aimed at reducing CO2 emissions from electricity generation as it will improve economic growth in South Africa.

Suggested Citation

  • Nyiko Worship Hlongwane & Olebogeng David Daw, 2022. "Carbon Dioxide Emissions from Electricity Power Generation and Economic Growth in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 12(1), pages 250-257.
    • Handle: RePEc:eco:journ2:2022-01-31
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    References listed on IDEAS

    as
    1. Acaravci, Ali & Ozturk, Ilhan, 2010. "On the relationship between energy consumption, CO2 emissions and economic growth in Europe," Energy, Elsevier, vol. 35(12), pages 5412-5420.
    2. Acheampong, Alex O., 2018. "Economic growth, CO2 emissions and energy consumption: What causes what and where?," Energy Economics, Elsevier, vol. 74(C), pages 677-692.
    3. Antonakakis, Nikolaos & Chatziantoniou, Ioannis & Filis, George, 2017. "Energy consumption, CO2 emissions, and economic growth: An ethical dilemma," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 808-824.
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    Cited by:

    1. Hlongwane, Nyiko Worship & Daw, Olebogeng David, 2022. "Renewable electricity consumption and economic growth: A comparative study of South Africa and Zimbabwe," MPRA Paper 115154, University Library of Munich, Germany, revised 24 Oct 2022.
    2. Nyiko Worship Hlongwane & Mpho Lenoke & Olebogeng David Daw, 2023. "An Analysis of Electricity Generation, Supply, and Economic Growth in Selected SADC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 482-493, November.
    3. Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Renewable Electricity Consumption and Economic Growth: A Comparative Study of South Africa and Zimbabwe," International Journal of Energy Economics and Policy, Econjournals, vol. 13(3), pages 197-206, May.

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    More about this item

    Keywords

    CO2 Emissions; Economic Growth; Electricity Consumption; Vector Error Correction Model; South Africa;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • C40 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - General
    • E23 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Production
    • F40 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - General

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