Clean energy-growth nexus in sub-Saharan Africa: Evidence from cross-sectionally dependent heterogeneous panel with structural breaks
Abstract
This paperexaminestheexistenceandnatureofacausalityrelationshipbetweencleanenergycon-
sumption andeconomicgrowthforapanelofelevensub-SaharanAfricancountriesovertheperiod
1971–2007.Weapplythepanelunitroottestthataccountsforthepresenceofmultiplestructuralbreaks
[13] and thenewly-developedpanelcointegrationmethodologywhichallowsforcross-sectiondepen-
dence andmultiplestructuralbreaks [38] as wellasabootstrap-correctedGrangercausalitytest.The
estimation resultsshowthatthereiscointegrationbetweencleanenergyconsumptionandeconomic
growth.Further,theresultsfromthepanelcausalitytestsindicatethatthereisindeedaunidirectional
Grangercausal flowfromcleanenergyconsumptiontoeconomicgrowth