The determinants of renewable energy in South Africa
- Authors: Adeniyi, Bamidele Ojo
- Date: 2023-12
- Subjects: Renewable energy sources -- South Africa , Power resources -- South Africa , Sustainable development -- Research -- South Africa
- Language: English
- Type: Master's theses , text
- Identifier: http://hdl.handle.net/10948/65503 , vital:74163
- Description: The South African energy system to date has been dominated by the high consumption of fossil fuels and the resultant greenhouse gas emissions. Aside from this, the country has continued to witness incessant power outages, a shortfall in electricity supply, and high electricity prices due to the ageing infrastructure of coal-powered plant. Meanwhile, the United Nations’s Sustainable Development Agenda mandates countries to ensure a sustainable environment by embracing affordable and clean energy in order to mitigate unfavourable climate action by 2030. The attainment of most Sustainable Development Goals depends on renewable energy development which includes solar, wind, hydro, geothermal and biomass energy among others. Therefore, an empirical study of the socio-economic and environmental determinants of renewable energy consumption in South Africa is imperative. Based on Environmental Kuznetz curve and Khan’s sustainable development theories, this study employed the Autoregressive Distributed Lag (ARDL) and Vector Autoregressive (VAR) causality methods to analyse the long-run relationship between economic, environmental and social determinants of renewable energy. The quantile regression method examined the relationship between environmental degradation and economic growth in South Africa between 1985 to 2021. The study shows a long-run relationship between renewable energy and economic factors such as gross domestic product, energy imports, and exchange rate, while gross capital formation and average electricity prices indirectly impact renewable energy consumption. Moreover, there exists a unidirectional influence between gross domestic product and real effective exchange rate to renewable energy consumption. The study suggests that more investment in renewable infrastructures and technology would improve renewable energy consumption in South Africa. The long-run result between environmental factors and renewable energy shows that fossil fuels, deforestation, and carbon dioxide emission indirectly influence renewable energy, while energy depletion increases as renewable energy consumption increases. Meanwhile, a unidirectional causality runs from renewable energy consumption to fossil fuels and carbon dioxide emissions. This suggests that renewable energy consumption would improve environmental quality in South Africa.On the relationship between social factors and renewable energy consumption, the long-run result shows that educational spending and employment rate positively increases renewable energy consumption, while per capita income and urban growth is yet to positively influence renewable energy. Moreover, a bidirectional causal relationship exists between employment rate and renewable energy consumption. This suggests that renewable energy would create job opportunity or the other way round vice versa in South Africa. There is a positive relationship between environmental degradation and economic growth between quantile 10th to 75th, with a quick negative turning seen higher, at quantile 90th. The growth of per capita income also shows a positive relationship at the lower quantile, while an inverse relationship was seen at the higher quantile of 50th to 99th. Non-renewable energy shows a significant and positive relationship to carbon dioxide emission across the quantile curve, while renewable energy shows an inverse relationship to carbon dioxide emissions across the quantile curve; and a quick turn from 25th quantile showing that urban growth does not positively influence renewable energy. This suggests that non-renewable energy use damages the environment, while renewable energy consumption improves the quality of the environment in South Africa. The study recommends that a direct alteration of renewable energy consumption by government is a necessary condition to diffuse clean energy technology across the country. Also, increasing investment in renewable energy infrastructure through public, private and government participation is a necessary move to actualise the achievement of self-sufficiency in the renewable energy sector. Furthermore, since research is an engine room for technological innovation, government should prioritise learning in the form of research, formal and informal training, and short-term courses to equip citizens with the necessary renewable technology skills. It is hoped that the findings of this study would be beneficial to the policymakers in South Africa and also any country where renewable energy consumption is yet to be explored. , Thesis (PhD) -- Faculty of Business and Economic Sciences, School of Economics, Development and Tourism, 2023
- Full Text:
- Date Issued: 2023-12
The impact of electricity on economic growth in South Africa
- Authors: Ndlovu, Vanessa Constance
- Date: 2013
- Subjects: Economic development -- South Africa , Power resources -- South Africa , Electric power consumption -- South Africa
- Language: English
- Type: Thesis , Masters , MCom
- Identifier: vital:9022 , http://hdl.handle.net/10948/d1019787
- Description: Since 1994, with many of its sanctions lifted, South Africa became a stronger economic power house in Africa leading the continent‘s industrial output and mineral production and generating a large proportion of Africa‘s electricity. The South African economy has since been growing at a fast pace which has also led to an increase in the demand for electricity. South Africa‘s generating capacity has remained constant through a consistently increasing demand, leading to an electricity shortfall. An immediate threat to South Africa‘s continued economic growth is a capacity constraint in terms of energy supply. Increasing economic growth coupled with the rapid industrialisation and mass electrification programme of the last decade, as well as planned and unplanned maintenance and coal stock pile problems led, in January 2008, to demand out stripping supply. With electricity being an important component of economic development, it is vital that the impact of the supply of electricity on the economic growth of the country be well understood. Currently few studies have been done on the analysis of this relationship in South Africa specifically and how this relationship impacts specific sectors of the economy that contributes to the total GDP of the country. This study has assumed rigorous application of Granger technique with proper statistical verification of assumptions, selection of relevant variables and provides trusted statistical forecasts. In an attempt to understand this relationship, an Econometric model has been developed to assess the impact of electricity supply and price on the economic growth of South Africa. In the empirical analysis section of this study it was found that with a forecast for GDP, past values of electricity prices and coal sales may be used to forecast electricity supply. It was also found that if we have a forecast value of future electricity price we can use past values of electricity supply and coal sales to forecast GDP for the next quarter. We also found that electricity supply is granger caused by GDP; electricity price; and total coal sales. And that economic growth is granger caused by electricity supply; electricity price; and total coal sales. It was concluded that in order for government to improve the economic growth of South Africa, a major focus on the energy industry is needed to ensure sustainable supply capacity. The energy sector, as was shown in the study, has a major impact in the functioning of the Gross Domestic Product of the country.
- Full Text:
- Date Issued: 2013