Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated Data

This study investigated the impact of energy consumption on human development in South Africa, using annual data from 1990 to 2019. The study used disaggregated data on energy measures namely: oil products consumption; electricity consumption; renewable energy consumption; natural gas; coal and lign...

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Main Authors: Musakwa Mercy T., Odhiambo Nicholas M.
Format: Article
Language:English
Published: Sciendo 2022-06-01
Series:Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice
Subjects:
Online Access:https://doi.org/10.2478/sues-2022-0006
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author Musakwa Mercy T.
Odhiambo Nicholas M.
author_facet Musakwa Mercy T.
Odhiambo Nicholas M.
author_sort Musakwa Mercy T.
collection DOAJ
description This study investigated the impact of energy consumption on human development in South Africa, using annual data from 1990 to 2019. The study used disaggregated data on energy measures namely: oil products consumption; electricity consumption; renewable energy consumption; natural gas; coal and lignite; and total energy consumption at an aggregate level. Human Development Index (HDI) was used as a measure of human development. By employing autoregressive distributed lag bounds test to cointegration and error correction model, the study found the impact of energy consumption on human development to be positive in the short run when renewable energy was used as a proxy, but insignificant in the long run. When oil products, natural gas and total energy were used as proxies for energy, a negative impact was confirmed in the short run, while an insignificant impact was confirmed in the long run. When electricity, coal and lignite were used as proxies for energy, an insignificant impact was confirmed, irrespective of the time frame considered. The results revealed that the positive impact of renewable energy on human development is not big enough to offset the negative impact of other energy sources. This suggests that South Africa has to continue to expand renewable energy if a positive impact of energy on human development is to be realized.
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spelling doaj.art-3506bdbd381046ff8898cedf632a70322022-12-22T02:17:13ZengSciendoStudia Universitatis Vasile Goldis Arad, Seria Stiinte Economice2285-30652022-06-0132212310.2478/sues-2022-0006Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated DataMusakwa Mercy T.0Odhiambo Nicholas M.1University of South Africa, UNISAPretoria, South AfricaUniversity of South Africa, UNISAPretoria, South AfricaThis study investigated the impact of energy consumption on human development in South Africa, using annual data from 1990 to 2019. The study used disaggregated data on energy measures namely: oil products consumption; electricity consumption; renewable energy consumption; natural gas; coal and lignite; and total energy consumption at an aggregate level. Human Development Index (HDI) was used as a measure of human development. By employing autoregressive distributed lag bounds test to cointegration and error correction model, the study found the impact of energy consumption on human development to be positive in the short run when renewable energy was used as a proxy, but insignificant in the long run. When oil products, natural gas and total energy were used as proxies for energy, a negative impact was confirmed in the short run, while an insignificant impact was confirmed in the long run. When electricity, coal and lignite were used as proxies for energy, an insignificant impact was confirmed, irrespective of the time frame considered. The results revealed that the positive impact of renewable energy on human development is not big enough to offset the negative impact of other energy sources. This suggests that South Africa has to continue to expand renewable energy if a positive impact of energy on human development is to be realized.https://doi.org/10.2478/sues-2022-0006human developmentenergy consumptionsouth africahuman development indexautoregressive distributed lago13o15k32
spellingShingle Musakwa Mercy T.
Odhiambo Nicholas M.
Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated Data
Studia Universitatis Vasile Goldis Arad, Seria Stiinte Economice
human development
energy consumption
south africa
human development index
autoregressive distributed lag
o13
o15
k32
title Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated Data
title_full Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated Data
title_fullStr Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated Data
title_full_unstemmed Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated Data
title_short Energy Consumption and Human Development in South Africa: Empirical Evidence from Disaggregated Data
title_sort energy consumption and human development in south africa empirical evidence from disaggregated data
topic human development
energy consumption
south africa
human development index
autoregressive distributed lag
o13
o15
k32
url https://doi.org/10.2478/sues-2022-0006
work_keys_str_mv AT musakwamercyt energyconsumptionandhumandevelopmentinsouthafricaempiricalevidencefromdisaggregateddata
AT odhiambonicholasm energyconsumptionandhumandevelopmentinsouthafricaempiricalevidencefromdisaggregateddata