Energy Consumption and Economic growth in Selected ECOWAS Countries

This study investigates the nexus between energy consumption and economic growth in selected ECOWAS countries. The study has four specific objectives, which are to: determine the relationship between renewable energy consumption per capita and economic growth; analyse how non-renewable energy consumption per capita affects economic growth; ascertain the effect of energy intensity on economic growth; and investigate the effect of electricity access rate on economic growth of the selected countries. Data were sourced from the World Development Indicators (WDI) and the International Energy Agency (IEA), and analysed using a panel ARDL model. The results indicate that renewable energy consumption exhibits a positive and significant long-run relationship with economic growth, but the short-run effects were negative. Non-renewable energy positively influences growth in the long run, but negatively in the short run. The findings further show that energy intensity has a negative long-run relationship with GDP, while electricity access was found to be a powerful long-run driver of economic growth. The study concludes that both renewable and non-renewable energy sources play significant roles in driving long-term economic growth in ECOWAS countries. However, dependence on non-renewable energy is unsustainable in the face of environmental and price vulnerabilities. It is recommended that ECOWAS governments prioritise renewable energy development through investment incentives, adopt a transitional strategy using oil and gas revenues to finance renewable energy and clean technology investments and establish efficiency standards for industries and households to promote sustainable economic growth in the ECOWAS region.