The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL Approach
This study examines the challenges and opportunities of electricity generation from coal on growth of South African economy. The study utilizes the available annual time series data collected from secondary sources (World Bank) spanning for the period from 1971 to 2015. The study employs the Autoreg...
| Main Authors: | , |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
EconJournals
2022-03-01
|
| Series: | International Journal of Energy Economics and Policy |
| Subjects: | |
| Online Access: | https://econjournals.com/index.php/ijeep/article/view/12541 |
| _version_ | 1797914250992156672 |
|---|---|
| author | Nyiko Worship Hlongwane Olebogeng David Daw |
| author_facet | Nyiko Worship Hlongwane Olebogeng David Daw |
| author_sort | Nyiko Worship Hlongwane |
| collection | DOAJ |
| description | This study examines the challenges and opportunities of electricity generation from coal on growth of South African economy. The study utilizes the available annual time series data collected from secondary sources (World Bank) spanning for the period from 1971 to 2015. The study employs the Autoregressive Distributed Lag (ARDL) model and an Error Correction Model (ECM) to analyse the challenges and opportunities of coal-fired electricity generation on growth South African economy. Statistical results from revealed a positive statistically insignificant short run and positive statistically significant long run relationship between electricity generated from coal and economic growth in South Africa. The policy implication from this study is that the policy makers need to acknowledge the positive contribution of coal-fired electricity generation and revise policies on decommissioning of these powerplants. The policymakers should propose and implement policies that encourage coal-fired electricity generation in a way that is environmentally friendly as it boosts economic growth in South Africa. |
| first_indexed | 2024-04-10T12:24:56Z |
| format | Article |
| id | doaj.art-dd1cf17b92d648838f6abb22752615f0 |
| institution | Directory Open Access Journal |
| issn | 2146-4553 |
| language | English |
| last_indexed | 2024-04-10T12:24:56Z |
| publishDate | 2022-03-01 |
| publisher | EconJournals |
| record_format | Article |
| series | International Journal of Energy Economics and Policy |
| spelling | doaj.art-dd1cf17b92d648838f6abb22752615f02023-02-15T16:15:18ZengEconJournalsInternational Journal of Energy Economics and Policy2146-45532022-03-0112210.32479/ijeep.12541The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL ApproachNyiko Worship Hlongwane0Olebogeng David Daw1School of Economics, North-West University, South AfricaSchool of Economics, North-West University, South AfricaThis study examines the challenges and opportunities of electricity generation from coal on growth of South African economy. The study utilizes the available annual time series data collected from secondary sources (World Bank) spanning for the period from 1971 to 2015. The study employs the Autoregressive Distributed Lag (ARDL) model and an Error Correction Model (ECM) to analyse the challenges and opportunities of coal-fired electricity generation on growth South African economy. Statistical results from revealed a positive statistically insignificant short run and positive statistically significant long run relationship between electricity generated from coal and economic growth in South Africa. The policy implication from this study is that the policy makers need to acknowledge the positive contribution of coal-fired electricity generation and revise policies on decommissioning of these powerplants. The policymakers should propose and implement policies that encourage coal-fired electricity generation in a way that is environmentally friendly as it boosts economic growth in South Africa.https://econjournals.com/index.php/ijeep/article/view/12541Electricity generationEconomic growthAutoregressive Distributed Lag (ARDL) ModelRenewable electricitySouth Africa |
| spellingShingle | Nyiko Worship Hlongwane Olebogeng David Daw The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL Approach International Journal of Energy Economics and Policy Electricity generation Economic growth Autoregressive Distributed Lag (ARDL) Model Renewable electricity South Africa |
| title | The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL Approach |
| title_full | The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL Approach |
| title_fullStr | The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL Approach |
| title_full_unstemmed | The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL Approach |
| title_short | The Challenges and Opportunities of Electricity Generation on Economic Growth in South Africa: An ARDL Approach |
| title_sort | challenges and opportunities of electricity generation on economic growth in south africa an ardl approach |
| topic | Electricity generation Economic growth Autoregressive Distributed Lag (ARDL) Model Renewable electricity South Africa |
| url | https://econjournals.com/index.php/ijeep/article/view/12541 |
| work_keys_str_mv | AT nyikoworshiphlongwane thechallengesandopportunitiesofelectricitygenerationoneconomicgrowthinsouthafricaanardlapproach AT olebogengdaviddaw thechallengesandopportunitiesofelectricitygenerationoneconomicgrowthinsouthafricaanardlapproach AT nyikoworshiphlongwane challengesandopportunitiesofelectricitygenerationoneconomicgrowthinsouthafricaanardlapproach AT olebogengdaviddaw challengesandopportunitiesofelectricitygenerationoneconomicgrowthinsouthafricaanardlapproach |