Evaluating the contribution of Renewable Energy on Economic growth of Sub-Saharan Africa

Abstract

In reaction to the depletion of fossil fuels such as oil and natural gas, an increase in energy consumption from renewable sources has long been regarded as important for economic growth. In 2014, 3.04 billion people worldwide, or over nine times the population of the United States, lacked access to clean cooking fuel; around 800 million of them were from Sub-Saharan Africa, excluding Northern Africa. Furthermore, Africa, more than any other area in the globe, relies heavily on wood fuel and charcoal for its energy needs. Africa boasts 39% of the world's renewable energy potential, more than any other continent, yet the effects of fossil fuel use have hit it harder. On average, this continent generates 40.5% of its power from renewable energy, more than any other continent, yet the region's continuous electricity scarcity has hampered economic growth and prevented it from meeting numerous development targets. This dissertation investigates the causal link between economic growth and renewable energy consumption from 1990 to 2017 through six interconnected chapters. The following five chapters, with the exception of chapter one, which gives background information, literature reviews, and the thesis's conceptual framework, and chapter seven, which provides a summary and police suggestions, have been constructed to accomplish three purposes. The first goal is to investigate the link between energy use and economic growth in sub-Saharan Africa. This information is taken from Chapter 2, which discusses the statistical relationship between total energy consumption and economic growth in Sub-Saharan African nations. The chapter offers an overview of how different forms of energy contribute to economic growth. The findings indicate that there is a feedback link between variables. Economic growth in sub-Saharan Africa is tied to total energy, which is linked to economic growth. The findings indicate that increasing the productivity of the energy industry might assist sustain economic growth in Sub-Saharan Africa. The second goal, which was addressed in chapters three and four, is to evaluate the influence of renewable energy on economic growth in Southern Africa and the relationship between biomass energy and economic growth in a sample of Sub-Saharan African nations. Econometric studies indicate that there is a link between the parameters. The findings show that SSA economies have not converged to a long-run stable path of real GDP, despite the fact that renewable energy has vi a positive influence on real GDP and can cut GHG emissions. Renewable energy contributions vary throughout sub-Saharan African countries, with certain countries suffering negative repercussions. Capital stock, gross capital formation, and labor force positively affect GDP. Energy intensity and technology do not contribute to GDP growth. The investigation shows a feedback hypothesis on the interdependence between renewable energy and economic growth, suggesting that energy conservation programs can influence output. The examination of biomass energy identifies three main categories of nations. On the one hand, the majority of countries' GDPs have increased while per capita biomass has decreased during the last three decades. Another substantial group of nations has witnessed a growth in both GDP and biomass consumption per capita. There is also a tiny group of nations witnessing a drop in GDP, including examples of both rising and falling per capita biomass use. The findings indicate that biomass energy usage does not necessarily decrease as GDP rises. Some countries have successfully developed policies to minimize biomass consumption. The ultimate objective is to assess the impact of energy development and economic expansion on environmental pollution in Sub-Saharan African countries. This analysis employed chapters five and six to investigate the association between energy intensity and GDP per capita in Eastern African countries (EAC). It also investigated the causal link between energy consumption, economic growth, and CO2 emissions in sub-Saharan African nations. The findings demonstrate that EAC nations' energy intensity has been significantly lowered. Furthermore, the study found that the long-term coefficient of GDP per capita is negative, indicating a shift in energy intensity trends. The findings imply that increasing energy productivity can greatly enhance economic development in EAC nations. The panel estimate demonstrates that GDP per capita has a large beneficial impact on CO2 emissions per capita. This indicates that increased economic growth leads to increased environmental deterioration. This suggests that increasing energy usage raises carbon emissions in sub-Saharan African countries. To recap, African states are varied, and there is no "one-way" answer to the energygrowth relationship that applies to all African countries. The purpose of this study is to provide the impact of renewable energy on GDP in fifteen Sub-Saharan African countries using a methodology based on the organizers' interest at the World Statistics Congress 2015 and focusing on a newly emerging field known as "trans-border statistics," which concerns statistics exchange and data building in border areas.