The energy consumption structure and African EMDEs' sustainable development

Hoang Phong Le; Dang Thi Bach Van

doi:10.1016/j.heliyon.2020.e03822

The energy consumption structure and African EMDEs' sustainable development

Heliyon. 2020 Apr 26;6(4):e03822. doi: 10.1016/j.heliyon.2020.e03822. eCollection 2020 Apr.

Authors

Hoang Phong Le^{1

2}, Dang Thi Bach Van¹

Affiliations

¹ School of Public Finance, University of Economics Ho Chi Minh City, 59C Nguyen Dinh Chieu, District 3, Ho Chi Minh City, Viet Nam.
² Department of Finance and Accounting Management, Ho Chi Minh City University of Law, 02 Nguyen Tat Thanh Street, District 4, Ho Chi Minh City, Viet Nam.

Abstract

This research evaluates the importance of renewable power and conventional fuels consumption in the economic growth of 20 African EMDEs towards sustainable development. Due to the evidence of slope heterogeneity alongside cross-sectional dependence, the author applies second-generational econometric techniques for heterogeneous panel data. After detecting the long-term relationship among all variables using Westerlund panel-data cointegration test, the long-run estimates are computed by AMG, MG and CCEMG estimators, which indicates that nonrenewable and renewable energy usage fosters African EMDEs' economic growth. Besides, capital, government expenditure, and trade openness also encourage economic growth. Moreover, the causality analysis (using Dumitrescu and Hurlin test) supports the feedback effects among the selected variables and economic growth. The findings provide critical implications for sustainable energy policies that contribute to the sustainable development of African EMDEs.

Keywords: African EMDEs; Econometrics; Economic development; Economic growth; Economics; Energy; Energy economics; Macroeconomics; Renewable power and conventional fuels consumption; Sustainable development.