Article ID Journal Published Year Pages File Type
7158398 Energy Conversion and Management 2018 13 Pages PDF
Abstract
This article identifies the sources and determines the convergence and causes of energy efficiency in Africa. In terms of contribution, it provides the first cross-country evidence. This study applies the stochastic fixed effect, true fixed effect and the Kumbhakar-Heshmati (K-H) models using a panel data of 22 countries for the period 1988-2014. The result reveals that: (1) the problem of energy efficiency in Africa is more structural in nature. Removing transient inefficiency and minimizing persistent inefficiency will save 5.7% and 84% of total energy consumption, respectively. Thus, energy security and carbon emissions will benefit more from policies aimed at the long-term than the short-term; (2) overall energy efficiency is low and hyoid in nature. While it declined from 1988 to 2006, the trend has reversed after 2006; (3) economic growth, urbanization and population density promote efficiency but price, foreign direct inflows and service and industry output reduce it; (4) energy efficiency convergence is conditional in nature, driven by country-specific factors such as the level of technology; (5) energy intensity is not a good measure of energy efficiency and should not be used as a policy indicator for energy efficiency enhancement.
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Physical Sciences and Engineering Energy Energy (General)
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