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Re-visiting the renewable energy–economic growth nexus: Empirical evidence from African OPEC countries

Oluwafisayo Alabi (School of Humanities and Social Sciences, International Public Policy Institute, University of Strathclyde, Glasgow, UK)
Ishmael Ackah (Institute for Oil and Gas Studies, University of Cape Coast-Ghana and Africa Centre for Energy Policy, Accra, Ghana)
Abraham Lartey (Department of Economics, University of Alicante, Alicante, Spain)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 27 July 2017

Issue publication date: 18 September 2017

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Abstract

Purpose

This paper aims to investigate the dynamic relationship between renewable energy and economic growth in African OPEC member countries (Angola, Algeria and Nigeria).

Design/methodology/approach

The fully modified ordinary least squares technique for heterogeneous cointegrated panels (Pedroni, 2000) is used to estimate the parameters of the model.

Findings

The study revealed four main findings. First, there is a bidirectional causality between renewable energy and economic growth in the long and the short run. Second, a bidirectional causality exists between non-renewable energy and economic growth in the short and long run. Third, a bidirectional causality exists between CO2 emissions and economic growth. Fourth, a unidirectional causality was also found between CO2 emissions and non-renewable energy consumption with the direction of causality stemming from the consumption of non-renewable energy to CO2 emissions.

Practical implications

Because renewable consumption enhances growth, OPEC-member Africa countries should encourage investment in modern renewable sources that has high conversion efficiency such as solar, wind and hydro to strengthen their response to mitigating the impacts of climate change.

Originality/value

This study applies multiple methods to analyze the relationship between renewable energy and economic growth in African OPEC countries.

Keywords

Citation

Alabi, O., Ackah, I. and Lartey, A. (2017), "Re-visiting the renewable energy–economic growth nexus: Empirical evidence from African OPEC countries", International Journal of Energy Sector Management, Vol. 11 No. 3, pp. 387-403. https://doi.org/10.1108/IJESM-07-2016-0002

Publisher

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Emerald Publishing Limited

Copyright © 2017, Emerald Publishing Limited

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