Sustainable transitioning in Africa: A historical evaluation of energy productivity changes and determinants

Abstract

As a hub of the world's energy challenge, efficient energy use in Sub Saharan Africa (SSA) can improve energy security, environmental sustainability and boost socio-economic conditions towards the “Africa We Want’’. In this regard, considering group heterogeneity, we analyzed the trend of energy productivity changes under Meta frontier Malmquist framework (MMEPI) based on Shephard energy distance function over 2000–2016 year period in SSA. Additionally, external factors of energy productivity changes are explored using Tobit regression model. The results indicate improvement in energy productivity, but the average distribution density shows a backward trend. The growth is principally driven by technological progress, which signals a greater potential in improving technical efficiency changes. Also, there are significant disparities in energy productivity changes across income groups. This suggests that employing Meta frontier technology overcomes the potential of underestimating productivity levels. The regression results depict that energy price, GDP growth, and population density positively support improvement in MMEPI. We support the view that each country should examine its local features, design and implement specific techniques and collectively build a regional sustainable energy development level.