Abstract

Energy poverty deteriorates the human capital and the growth potential in the developing and emerging countries. We estimate the long-run effect of electricity access, modern renewable energy consumption, and traditional renewable energy consumption on human development (index). We use an AutoRegressive Distributed Lag/ARDL model based on pooled mean group estimation for a panel of 44 southern countries, representing three energy-poor regions of the world over the period 1990-2018. By distinguishing two groups of countries according to their level of HDI, we show that it exists a positive and significant relationship between electricity access and human development in countries with low and medium HDI and a positive effect of modern renewable energy on the level of human development in countries with higher HDI. In addition, the estimations reveal a significant negative effect of conventional renewable energy use on human development for the two countries groups.

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