Abstract
This study investigates the role of economic well-being and economic freedom as drivers of renewable energy consumption using the share of renewables in total energy consumption in Africa. To achieve this, the study employs a panel data of 32 African countries over the period 1996-2017. To deal with identification challenges associated with panel time-series data, we use the Dynamic Ordinary Least Squares econometric technique. As part of our findings, first, we have evidence that increasing economic well-being in Africa increases the share of renewables in total energy consumption to a point after which it turns negative (inverted U shape). Second, the disaggregated measures of economic freedom show that both property rights and tax burden decrease the share of renewables in total energy consumption. On the contrary, an increase in trade freedom and business freedom measures increases the share of renewables in total energy consumption. Toward the goal of promoting access to affordable, reliable, sustainable, and modern energy for all by 2030, governments in Africa should actively encourage trade freedom and business freedom to enhance the share of renewable energy consumption. Similarly, reducing the tax burden will promote the share of renewable energy consumption. Likewise, we call for further investigation into our evidence of a negative relationship between property rights and the share of renewables in total energy consumption.
Highlights
The traditional energy supply challenges in the 70s and 80s, and climate change concerns, have ignited interest in renewable energy sources
This study examined the role of economic well-being and disaggregated measures of economic freedom as drivers of the share of renewables in total energy consumption in Africa
Evidence from all the models suggests that economic well-being, economic freedom is key drivers of the share of renewables in total energy consumption in Africa
Summary
The traditional energy supply challenges in the 70s and 80s, and climate change concerns, have ignited interest in renewable energy sources. In September 2015, the United Nations set a new target (Sustainable Development Goal {SDG} 7) to promote access to affordable, reliable, sustainable, and modern energy for all by 2030. This concerted global effort shows a revived interest in the investment, production, and consumption of cheaper and environmentally friendly sources of energy. The International Energy Agency (IEA) report [1] predicts that the share of renewables in Figure 1 shows an increasing trend in world renewable energy consumption for most of the sources except traditional biofuels.
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
