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Energy consumption and economic growth modelling in SADC countries: an application of the VAR Granger causality analysis

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  • Tafirenyika Sunde

Abstract

We investigate the relationship between energy consumption and economic growth in ten SADC countries using the VAR model over the period 1971 to 2015. We convert variables to growth rates before we use them in the model. Results indicate unidirectional causality running from real economic growth to energy consumption in Angola, Democratic Republic of Congo, Mauritius, Namibia; bidirectional causality between energy consumption and economic growth in Botswana and Mauritius, and no causality in Mozambique, South Africa, Zambia and Zimbabwe. In countries where real economic growth Granger causes energy consumption the conservation hypothesis is confirmed. In countries where no causality is found the neutrality hypothesis is confirmed which implies economic growth and energy consumption independent of each other. The feedback hypothesis confirmed in Botswana and Mauritius implies that an increase in the economic output will increase the level of energy consumption while an energy conservation policy will adversely affect economic output.

Suggested Citation

  • Tafirenyika Sunde, 2020. "Energy consumption and economic growth modelling in SADC countries: an application of the VAR Granger causality analysis," International Journal of Energy Technology and Policy, Inderscience Enterprises Ltd, vol. 16(1), pages 41-56.
    • Handle: RePEc:ids:ijetpo:v:16:y:2020:i:1:p:41-56
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    Citations

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    Cited by:

    1. Jeemin Youn & Hyungkyoo Kim & Jaekyung Lee, 2023. "Relationships between Thermal Environment and Air Pollution of Seoul’s 25 Districts Using Vector Autoregressive Granger Causality," Sustainability, MDPI, vol. 15(23), pages 1-22, November.
    2. Teles Huo & Miguel St. Aubyn, 2022. "Electricity, Exergy and Economic Growth in Mozambique," International Journal of Energy Economics and Policy, Econjournals, vol. 12(4), pages 439-446, July.
    3. Muntasir Murshed & Haider Mahmood & Tarek Tawfik Yousef Alkhateeb & Mohga Bassim, 2020. "The Impacts of Energy Consumption, Energy Prices and Energy Import-Dependency on Gross and Sectoral Value-Added in Sri Lanka," Energies, MDPI, vol. 13(24), pages 1-22, December.
    4. Teles Huo & Miguel St. Aubyn, 2021. "Electricity, Exergy And Economic Growth In Mozambique, 1971 – 2014," Working Papers REM 2021/0170, ISEG - Lisbon School of Economics and Management, REM, Universidade de Lisboa.
    5. Ali Matar, 2020. "Does electricity consumption impacting financial development? Wavelet analysis," Future Business Journal, Springer, vol. 6(1), pages 1-9, December.
    6. Saeed Solaymani, 2021. "A Review on Energy and Renewable Energy Policies in Iran," Sustainability, MDPI, vol. 13(13), pages 1-23, June.
    7. Alexander Maune & Ephraim Matanda & Ezekiel Chitombo, 2024. "Energy Consumption and Economic Growth: Evidence from SADC Countries," International Journal of Economics and Financial Issues, Econjournals, vol. 14(6), pages 403-411, October.
    8. Olukorede Tijani Adenuga & Khumbulani Mpofu & Ragosebo Kgaugelo Modise, 2022. "Energy–Carbon Emissions Nexus Causal Model towards Low-Carbon Products in Future Transport-Manufacturing Industries," Energies, MDPI, vol. 15(17), pages 1-13, August.
    9. 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.
    10. Choudhury, Tonmoy & Kayani, Umar Nawaz & Gul, Azeem & Haider, Syed Arslan & Ahmad, Sareer, 2023. "Carbon emissions, environmental distortions, and impact on growth," Energy Economics, Elsevier, vol. 126(C).
    11. Chengtao Deng & Zixin Guo & Xiaoyue Huang & Tao Shen, 2023. "The Dynamic Nexus of Fossil Energy Consumption, Temperature and Carbon Emissions: Evidence from Simultaneous Equation Model," IJERPH, MDPI, vol. 20(3), pages 1-17, January.

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