TITLE:
Economic Growth and Energy Consumption in the CEMAC Zone
AUTHORS:
Mabiala Jean Félix, Marcelin Nziengui, Massamouna Jean Bruno Didier
KEYWORDS:
Economic Growth, Energy Consumption, Causality Test, Retroactivity Hypothesis
JOURNAL NAME:
Theoretical Economics Letters,
Vol.12 No.6,
December
28,
2022
ABSTRACT: Despite existing studies on the environmental effect
of economic growth, no study has yet established the relationship between
economic growth and energy consumption in the Congo Basin countries. Thus, this
study aims to analyze the relationship between economic growth and energy consumption.
Specifically, it is a question of evaluating the effect of economic growth on
energy consumption on the one hand and analyzing the causality between the two
variables on the other. To achieve the first objective, we mobilized FMOLS and
DOLS estimation techniques. For the second objective, we used the Granger
causality test. The results suggest that economic growth significantly
increases energy consumption. Furthermore, the Granger causality test allows us
to validate the retroactivity hypothesis for the CEMAC zone economies.
Consequently, the CEMAC zone must put in place an energy efficiency policy
based on the use of new technologies such as biomass, hydrogen, wind and solar
power in order to allow the different governments to progressively engage in
the path of low-carbon growth and ensure the transition to a greener economy.