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Energy is widely considered a propulsive force for economic activity and industrial development. In this context, this paper aims at investigating the implications of renewable and non-renewable energy consumption for economic growth in Cameroon. To achieve this objective, used is made of time series data spanning the period 1971 - 2016 and an error correction. We find a long-run relationship between gross domestic product, renewable energy consumption, non-renewable energy consumption, gross capital formation and government expenditure. We also find that with the exception of non-renewable energy, these variables register positive and significant long-run effects on economic growth. However, once the two energy sources are interacted, the observed substitution-effect between renewable and non-renewable energy utilization enhances the direct impact of each energy source on economic growth. This indicates that renewable energy is a major driver of economic growth in the short- and long-run in Cameroon. These findings suggest that increasing the exploitation and use of renewable energy sources have implications for overall prosperity in developing country settings.

The Implications of Renewable and Non-Renewable Energy Consumption for Economic Growth in Cameroon