Energy consumption, economic growth and energy transition in Africa: A cross‐sectional dependence analysis

Abstract

AbstractBy adopting Westerlund's panel cointegration test, and the panel Granger, non‐causality test, this study investigates the long‐run and causal relationship between energy consumption and economic growth and energy transition in Africa. The test took into account cross‐sectional dependency for five African areas from 1990 to 2018. The models additionally contain labour and capital stocks to investigate causality and cointegration in the areas. The cross‐sectional dependency test shows that the African region sample is cross‐sectionally correlated. The panel cointegration test shows evidence of a long‐run relationship between economic growth, energy consumption, labour and capital stock in all areas. The non‐causality result shows a uni‐directional causality from economic growth to energy use.