An evaluation of energy efficiency performances in Africa under heterogeneous technologies. (1st February 2019)

• Record Type: Journal Article
• Authors: Adom, Philip Kofi
• Is Part Of: Journal of cleaner production. Volume 209(2019)
• Page Start: 1170
• Page End: 1181
• Publication Date: 2019-02-01
• Subjects: Energy efficiency -- Unobserved heterogeneity in production technology -- Stochastic frontier -- Africa; Factory and trade waste -- Management -- Periodicals; Manufactures -- Environmental aspects -- Periodicals; Déchets industriels -- Gestion -- Périodiques; Usines -- Aspect de l'environnement -- Périodiques; 628.5
• DOI: 10.1016/j.jclepro.2018.10.320
• Languages: English
• ISSNs: 0959-6526

Abstract

Abstract: This study applied a parametric-based approach to evaluate energy efficiency performances of 22 African countries assuming heterogeneity in the production technologies from 1988 to 2014. Using the Akaike Information Criterion, the optimal number of classes was chosen to be 2, which suggests a dual isoquant (technology) case. The energy demand frontier determinants revealed that price, income, the structure of output, and urbanization play significant roles in explaining total energy consumption with some evidence of heterogeneity in their effects across classes. The mean estimated energy efficiency for the pooled sample is 59%. The class 1 members (with a mean energy efficiency score of 62%) performed better than class 2 members (with a mean energy efficiency score of 58%). Both classes showed evidence of different group leaders in energy efficiency performance. In class 1, South Africa, Zimbabwe, and Zambia emerged as the best performing economies with mean energy efficiency scores of 88%, 73%, and 66%, respectively. In class 2, Algeria and Botswana emerged as the best performing economies with a mean energy efficiency value of 71%. The performances of the remaining countries in both classes are low. In both classes, members seem to make a consistent progress, albeit at a slower pace, in energy efficiency improvements except in Senegal where a cyclical trend was detected. There is a significant scope for improvement in energy efficiency in Africa. This suggests that Africa should pay serious attention to energy efficiency improvements. Highlights: Evaluates energy efficiency of African countries under heterogeneous technologies. There is heterogeneity in energy efficiency between the two classes. Different countries emerged as group leaders in both classes. In each class, there is a consistent progress in energy efficiency albeit at slower rate. Price, income, urbanization and economic structure affects energy demand in both classes.