Resolving the energy-growth nexus in South Africa
Journal of Economic and Financial Sciences
| Field | Value | |
| Title | Resolving the energy-growth nexus in South Africa | |
| Creator | Molele, Sehludi B. Ncanywa, Thobeka | |
| Description | Energy use is a pivotal element in the economic life of any country, especially in a developing economy such as South Africa. Based on trends such as load-shedding and oil supply shocks, it is essential to investigate the relationship between electricity and oil consumption to economic growth. This is particularly relevant in the South African context, where policy-makers have had to grapple with excess demand for electricity. The Johansen cointegration and vector error correction model approaches have been used to examine a short- and long-run relationship between energy consumption and economic growth. It has been found that electricity consumption has a negative relationship with economic growth and oil consumption has a positive relationship. Therefore, conservation policies like electricity rationing may be implemented, thereby proving to be beneficial to the broader economy. To offset periodical effects such as oil supply shocks, the country should keep high or adequate amounts of oil reserves and/or invest in oil exploration. It is highly recommended, regarding electricity, that the government is to adopt policy measures and direct interventions to promote an efficient use of electricity. | |
| Publisher | AOSIS | |
| Date | 2018-03-07 | |
| Identifier | 10.4102/jef.v11i1.162 | |
| Source | Journal of Economic and Financial Sciences; Vol 11, No 1 (2018); 8 pages 2312-2803 1995-7076 | |
| Language | eng | |
| Relation |
The following web links (URLs) may trigger a file download or direct you to an alternative webpage to gain access to a publication file format of the published article:
https://jefjournal.org.za/index.php/jef/article/view/162/171
https://jefjournal.org.za/index.php/jef/article/view/162/170
https://jefjournal.org.za/index.php/jef/article/view/162/172
https://jefjournal.org.za/index.php/jef/article/view/162/169
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