Open AccessCarbon Dioxide Emissions from Electricity Power Generation and Economic Growth in South Africa
Author(s) -
Nyiko Worship Hlongwane,
Olebogeng David Daw
Publication year - 2022
Publication title -
international journal of energy economics and policy
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.449
H-Index - 33
ISSN - 2146-4553
DOI - 10.32479/ijeep.12540
Subject(s) - error correction model , electricity , short run , granger causality , economics , electricity generation , natural resource economics , time series , carbon dioxide , electricity demand , causality (physics) , econometrics , cointegration , macroeconomics , power (physics) , statistics , mathematics , engineering , ecology , physics , quantum mechanics , biology , electrical engineering
This study analyses the relationship between CO2 emissions from electricity generation and economic growth in South Africa. The study utilises annual time series data spanning for the period from 1971 to 2014 sourced from the World Bank. The study employs a Vector Error Correction Model (VECM) to analyse the short run and long run relationships. Empirical results revealed that there is a negative statistically insignificant short run relationship and long run negative statistically significant relationship between CO2 emissions and economic growth in South Africa. The Granger causality results revealed noncausal relationship between CO2 and economic growth. The policy implication of this study is that Eskom and policy makers must propose and implement policies aimed at reducing CO2 emissions from electricity generation as it will improve economic growth in South Africa.