Renewable Energy Consumption and Economic Growth Nexus in the Central African Sub-Region: Application of Panel Cointegration Approach

Djouedjom Talla, Francine Gaelle, Zhao Xicang, Isaac Newton Akowuah


The study examined the causal relationship between renewable energy consumption and economic growth patterns in six countries in the Central African Sub-region using a panel data collected for a period of 1990-2015. The Central African Sub-region constitutes the part of Africa where there is abundance of renewable energy resources. The study employed the panel fixed and Random effect models, the Dynamic Ordinary Least squares (DOLS), Fully Modified Ordinary Least squares (FMOLS) and Pairwise Dumitrescu-Hurlin Panel Causality techniques to examine the short and long run impacts of renewable energy on Economic growth. The study found that, economic growth and renewable natural resources have both short run and long run relationships. Again, unidirectional causality was found between renewable energy consumption and economic growth and an inverse relationship was also identified. The study recommends that, government policies should be directed to utilize cost effective renewable technologies to expanding the abundance renewable energy resources to boost productivity, support agriculture and rural industries. This would spur the potentials to propel sustainable economic growth, future energy security while the environment is also protected.

Keywords: Renewable Energy, Economic growth, Central Africa

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