Structural breaks in renewable energy in South Africa: A Bai & Perron break test application

In order to remedy the continuous problem of sustainable energy supply, the South African government committed itself to pursuing renewable energies (RE) as a viable alternative to traditional sources such as fossil fuels. The aim of this study is to understand whether the policies pursued by the South African government in the period 1990-2010 have had any effect on the consumers and producers of RE. To do so, the Bai & Perron (1998, 2003) break test methodology is employed to examine the evolution of RE production and consumption. Deviations from the base case are then explained in the South African economic and policy context.