IDEAS home Printed from https://ideas.repec.org/a/eco/journ2/2022-02-39.html
   My bibliography  Save this article

Effects of Industrialization, Technology and Labor efficiency on Electricity Consumption: Panel Data Experience of Rwanda, Tanzania and Kenya

Author

Listed:
  • Daniel Mburamatare

    (College of Science and Technology, African Center of Excellence in Energy for Sustainable Development, University of Rwanda, Kigali, Rwanda)

  • William K. Gboney

    (College of Science and Technology, African Center of Excellence in Energy for Sustainable Development, University of Rwanda, Kigali, Rwanda)

  • Jean De Dieu Hakizimana

    (College of Science and Technology, African Center of Excellence in Energy for Sustainable Development, University of Rwanda, Kigali, Rwanda)

  • Fidel Mutemberezi

    (College of Business and Economics, University of Rwanda, Kigali, Rwanda)

Abstract

The objective of this paper is to investigate the effects of industrialization, technology and labor efficiency on electricity consumption in East African Region especially in Rwanda, Kenya and Tanzania over the period from 1990 to 2019. This study adopts a three-stage approach, we used four different panel unit root tests including Levin, Lin and Chu (LLC); Im, Pesaran, and Shin (IPS); ADF - Fisher Chi-square and PP - Fisher Chi-square. The results reveal that all variables are stationary and integrated with order one. Pedroni's cointegration tests reveals that the variables are not cointegrated while Johansen Fisher and error correction-based panel cointegration tests reveal that all variables are cointegrated with at most one cointegrating equation. The study uses Full Modified Ordinary Least Squares (FMOLS) and Dynamic Ordinary Least Squares (DOLS) to estimate the long run relationship among the variables. We find that the increase in industrialization increases electricity consumption whiles increase in technology and enhanced labor efficiency decreases electricity consumption. The study recommends that countries need to consider the current level and the future GCF in planning of electricity supply and production to meet demand, promote efficient use of innovative technology and improve labor efficiency in the industrial sector.

Suggested Citation

  • Daniel Mburamatare & William K. Gboney & Jean De Dieu Hakizimana & Fidel Mutemberezi, 2022. "Effects of Industrialization, Technology and Labor efficiency on Electricity Consumption: Panel Data Experience of Rwanda, Tanzania and Kenya," International Journal of Energy Economics and Policy, Econjournals, vol. 12(2), pages 349-359, March.
    • Handle: RePEc:eco:journ2:2022-02-39
    as

    Download full text from publisher

    File URL: https://www.econjournals.com/index.php/ijeep/article/download/12551/6692
    Download Restriction: no
    File URL: https://www.econjournals.com/index.php/ijeep/article/view/12551
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Co-integration; Electricity consumption; industry sector; stationarity;
    All these keywords.

    JEL classification:

    • C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
    • C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications

    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:eco:journ2:2022-02-39. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Ilhan Ozturk (email available below). General contact details of provider: http://www.econjournals.com .

    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.