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Renewable Electricity Consumption and Economic Growth: A Comparative Study of South Africa and Zimbabwe

Author

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  • Nyiko Worship Hlongwane

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

  • Olebogeng David Daw

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

Abstract

The study conducts a comparative analysis of the relationship between renewable electricity consumption and economic growth in South Africa and Zimbabwe. The study utilises time series data spanning from 1990 to 2019 collected from the World Bank and International Energy Agency (IEA). The study performed the Dickey-Fuller Generalised Least Squares and Phillips-Perron unit root test, ARDL Bounds test for cointegration and optimal lags models. Empirical results revealed that in the short run renewable electricity consumption has a negative impact on economic growth in both countries. In the long run, however, in South Africa it has a negative statistically significant effect in South Africa and a positive statistically insignificant effect in Zimbabwe on economic growth. The study recommends the revision of renewable electricity policies in both countries to boost economic growth significantly in both countries.

Suggested Citation

  • 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.
    • Handle: RePEc:eco:journ2:2023-03-25
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    References listed on IDEAS

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    Cited by:

    1. 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.

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    More about this item

    Keywords

    Renewable electricity consumption; Economic growth; South Africa; Zimbabwe; Autoregressive Distributed Lags Model.Africa; Zimbabwe; ARDL model;
    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
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O43 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Institutions and Growth
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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