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The transition between energy efficient and energy inefficient states in Cameroon

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  • Adom, Philip Kofi

Abstract

I use a two-state (energy efficient/inefficient) Markov-switching dynamic model to study energy efficiency in Cameroon in a novel manner, employing yearly data covering 1971 to 2012. I find that the duration of an energy inefficient state is about twice as long as an energy efficient state, mainly due to fuel subsidies, low income, high corruption, regulatory inefficiencies, poorly developed infrastructure and undeveloped markets. To escape from an energy inefficient state a broad policy overhaul is needed. Trade liberalization and related growth policies together with the removal of fuel subsidies are useful, but insufficient policy measures; the results suggest that they should be combined with structural policies, aiming at institutional structure and investment in infrastructure.

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  • Adom, Philip Kofi, 2016. "The transition between energy efficient and energy inefficient states in Cameroon," Energy Economics, Elsevier, vol. 54(C), pages 248-262.
    • Handle: RePEc:eee:eneeco:v:54:y:2016:i:c:p:248-262
    DOI: 10.1016/j.eneco.2015.11.025
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    More about this item

    Keywords

    Energy efficiency; Transition between energy states; Cameroon; Markov-switching dynamic model;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O52 - Economic Development, Innovation, Technological Change, and Growth - - Economywide Country Studies - - - Europe
    • Q41 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Demand and Supply; Prices
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy

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