Energy Prices, Income and Electricity Consumption in Africa: The Role of Technological Innovation

Authors

  • Taiwo Owoeye Department of Economics, Ekiti State University, Ado-Ekiti, Ekiti State, Nigeria
  • Dayo Benedict Olanipekun Department of Economics, Ekiti State University, Ado-Ekiti, Ekiti State, Nigeria
  • Akindele John Ogunsola PhD Candidate, School of Accounting, Economics & Finance, University of KwaZulu-Natal, Westville Campus, Durban, South Africa
  • Augustine Adebayo Kutu School of Accounting, Economics & Finance, University of KwaZulu-Natal, Westville Campus, Privsate Bag X54001, Durban 4000, South Africa

Abstract

In this paper, we examine an extended model of the determinants of electricity consumption to include the effect of technological innovation represented by the number of patent and trademark registered. The study focused on 35 African countries from 2009 to 2018 based on availability of records on patent and trademark registration. Both the one and two-step system generalized method of moments were explored to estimate the empirical model. The models were estimated in five different categories to properly account for the behaviour of technological innovation and other determinants of electricity consumption. It was revealed that technological innovation has an insignificant effect on electricity consumption in Africa. However, other variables of interest affected electricity consumption in diverse ways; while per capita income and population growth have positive and significant effect on electricity consumption, energy price and FDI inflows exhibit a negative and significant effect on electricity consumption. The results suggest that technological innovation has not promoted energy efficiency in Africa possibly due to weak innovative capabilities of African countries. Hence government effort should be geared towards improving innovative technology in the region.

Keywords: Technological Innovation, Energy price, Electricity consumption, GDP per capita, System Generalized Method of Moments

JEL Classifications: O30, O34, P18, Q20

DOI: https://doi.org/10.32479/ijeep.9494

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Author Biographies

Taiwo Owoeye, Department of Economics, Ekiti State University, Ado-Ekiti, Ekiti State, Nigeria

Economics, Associate Professor

Dayo Benedict Olanipekun, Department of Economics, Ekiti State University, Ado-Ekiti, Ekiti State, Nigeria

Economics, Lecturer

Akindele John Ogunsola, PhD Candidate, School of Accounting, Economics & Finance, University of KwaZulu-Natal, Westville Campus, Durban, South Africa

PhD Candidate, School of Accounting, Economics and Finance

Augustine Adebayo Kutu, School of Accounting, Economics & Finance, University of KwaZulu-Natal, Westville Campus, Privsate Bag X54001, Durban 4000, South Africa

Economics, Associate Professor

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Published

2020-08-10

How to Cite

Owoeye, T., Olanipekun, D. B., Ogunsola, A. J., & Kutu, A. A. (2020). Energy Prices, Income and Electricity Consumption in Africa: The Role of Technological Innovation. International Journal of Energy Economics and Policy, 10(5), 392–400. Retrieved from https://www.econjournals.com/index.php/ijeep/article/view/9494

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Articles