Econometric Analysis of the Effect of Urbanization on Energy Security in Africa: Evidence from Panel Data for Selected African Countries

Seyfe Fikir

doi:10.7176/jetp/10-2-02

Abstract

The aim of study was to investigate the effect of urbanization on energy security in Africa. Panel data were collected from 30 African countries including both developing and world development indicators for the period of 2000-2019. Stochastic Impacts by Regression on Population, Affluence, and Technology (STRIPAT) model was used to identify the effect of urbanization and related factor on energy security. Energy efficiency was measured as the ratio of GDP to total energy consumption. Fixed effect regression technique was used to estimate the coefficient and their result indicate that urbanization, industrialization and per capita income can improve energy security in Africa. Industrialization improves energy security based on economies of scale mainly investing in energy saving technology. Government of African countries should optimize industrialization and urbanization while paying attention on improving the technology to reduce energy consumption, invest in energy saving technology to ensure energy security in their development process. Diversifying the source of energy has been considered as a way of ensuring energy sustainability. Keywords : energy security, urbanization, STRIPAT model, panel data, Africa DOI: 10.7176/JETP/10-2-02 Publication date: April 30 th 2020

Highlights

Energy security ensuring diverse energy resource in sustainable quantities at affordable price, by taking into account environmental management requirement and interaction among economic sectors (Trollip et al, 2014).The energy consist four major parts: availability, affordability, efficiency and stewardship(Nathaniel et al, 2015).It is the integral part of economic growth and development process (Opeyemi et al, 2016)
90 per cent of the increase will be in Africa and Asia, the fastest urbanizing global regions (Economic Report on Africa, 2017).Urbanization exerts a number of influences on energy use
MATERIALS AND METHODS 3.1 STIRPAT Model Specification The aim of this study was to analysis the effect of Urbanization and other related variable on energy security

Summary

Introduction

Energy security ensuring diverse energy resource in sustainable quantities at affordable price, by taking into account environmental management requirement and interaction among economic sectors (Trollip et al, 2014).The energy consist four major parts: availability, affordability, efficiency and stewardship(Nathaniel et al, 2015).It is the integral part of economic growth and development process (Opeyemi et al, 2016). In 1950 the urban share of the world’s population was 30 per cent, but by 2050 it will be 66 per cent. 90 per cent of the increase will be in Africa and Asia, the fastest urbanizing global regions (Economic Report on Africa, 2017).Urbanization exerts a number of influences on energy use. It permits economics of scale in production but require more energy consumption. According to (United Nation, 2018) revision 55% of the world’s population residing in urban areas. Urbanization in developing countries could dramatically increase oil consumption, with implications for global warming and energy security (McDonald, 2008)

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