Abstract

In Africa, energy plays an important role in the processes of economic and sustainable development. However, inefficiency such as mismanagement of resources constrains productivity. Prior energy efficiency studies in Africa have failed to provide the paths through which energy efficiency improvement can be achieved. The current study aims to assess energy efficiency improvement among 25 selected countries in Africa. First, the dynamic slack-based measure (DSBM) data envelopment analysis (DEA) model is applied to gauge the efficiency measurement. Further, the Malmquist productivity index (MPI) is employed to investigate the energy efficiency improvement during 2006–2014. Empirically, the results from the dynamic slack-based measure (DSBM) model show that energy efficiency in Africa is generally low. Also, the findings from the MPI suggest there is no significant improvement in energy efficiency in Africa. Based on the estimated results, some energy efficiency improvement strategies are further proposed for sample countries in Africa.

Highlights

  • Energy efficiency improvement is a key factor often advocated to enhance productivity as well as improve environmental quality

  • One challenge in data collection is that most of the African countries have a lot of missing data, and because of this situation, the sample covers only 25 countries out of a total of 54 countries in Africa

  • African economies with missing data in one or more of the selected inputs and outputs were excluded from the sample

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Summary

Introduction

Energy efficiency improvement is a key factor often advocated to enhance productivity as well as improve environmental quality. African economies have been witnessing incremental economic growth since 2000 and energy consumption has increased drastically by 45% [2]. The main priority of African countries is to improve the growing energy demand situation and to ensure universal coverage of modern energy services [2,3]. In pursuing this agenda, conscious steps are needed not to affect the quality of the environment. Conscious steps are needed not to affect the quality of the environment To this end, energy efficiency improvement measures that will predict the future energy use trends and the patterns are paramount. It allows sectorial managers and investors to make strategic energy policies to improve efficiency, reliability, and CO2 emissions reduction

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