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The Non-Linear Effects of Energy Efficiency Gains on the Incidence of Energy Poverty

Author

Listed:
  • Raad Al-Tal

    (Department of Economics, The University of Jordan, Amman 11942, Jordan)

  • Muntasir Murshed

    (School of Business and Economics, North South University, Dhaka 1229, Bangladesh)

  • Paiman Ahmad

    (Department of Law, College of Humanity Sciences, University of Raparin, Ranya 46012, Iraq
    International Relations and Diplomacy Department, Faculty of Administrative Sciences and Economics, Tishk International University, Erbil 44001, Iraq)

  • Abdelrahman J. K. Alfar

    (Department of Economics, The University of Hull, Hull HU6 7RX, UK)

  • Mohga Bassim

    (Department of Economics and International Studies, University of Buckingham, Buckingham MK18 1EG, UK)

  • Mohamed Elheddad

    (Department of Management, Huddersfield Business School, University of Huddersfield, Huddersfield HD1 3DH, UK)

  • Mira Nurmakhanova

    (Department of Accounting and Finance, KIMEP University, Almaty 050010, Kazakhstan)

  • Haider Mahmood

    (Department of Finance, College of Business Administration, Prince Sattam Bin Abdulaziz University, Alkharj 11942, Saudi Arabia)

Abstract

Energy poverty is defined as insufficient access to modern energy resources which are relatively cleaner than the traditionally utilized ones. In this regard, the incidence of energy poverty is particularly higher in the cases of the developing countries across the globe. Accordingly, the chronic energy poverty issues in the developing countries within Sub-Saharan Africa have become a major socioeconomic and environmental concern for the associated governments. Hence, this study aims to evaluate the effects of energy efficiency gains and shocks to other key macroeconomic factors on energy poverty in the context of selected Sub-Saharan African nations. In this study, we measure energy poverty in terms of the lack of access to clean cooking fuels and technologies for the population of the selected Sub-Saharan African countries. The overall findings from the common correlated effects panel regression analysis reveal that energy efficiency gains initially aggravate the energy poverty situation but improve it later on; consequently, a U-shaped relationship between energy efficiency and access to clean cooking fuels and technologies is evidenced. Besides, the predicted threshold levels of energy efficiency are observed to be higher than the average energy efficiency level of the Sub-Saharan African nations. Moreover, the results also portray that economic growth, carbon dioxide emissions, foreign direct investment inflows, and international trade are effective in reducing energy poverty. Conversely, financial development is witnessed to be ineffective in influencing the incidence of energy poverty in this region.

Suggested Citation

  • Raad Al-Tal & Muntasir Murshed & Paiman Ahmad & Abdelrahman J. K. Alfar & Mohga Bassim & Mohamed Elheddad & Mira Nurmakhanova & Haider Mahmood, 2021. "The Non-Linear Effects of Energy Efficiency Gains on the Incidence of Energy Poverty," Sustainability, MDPI, vol. 13(19), pages 1-20, October.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:11055-:d:650746
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