Energy Consumption and Economic Growth in Selected Sub-Saharan African Countries: Evidence From Panel Dynamic Ordinary Least Square Method.

This study examines the impact of renewable and non-renewable energy consumption on economic growth in selected Sub-Saharan African countries. The research is anchored on the energy transition theory and employs a panel dynamic ordinary least squares (DOLS) estimation technique on data spanning from 2000 to 2023. Unit root tests confirmed a mixture of I(0) and I(1) variables, justifying the use of DOLS. The findings reveal that, renewable energy consumption has a statistically significant negative long-run effect on economic growth, suggesting that the transition to renewables may impose short-to-medium term economic costs through resource diversion. Conversely, non-renewable energy consumption shows a negative but statistically insignificant impact on economic growth. Among the control variables, population growth negatively affects GDPPC, while labor force participation positively contributes to growth. The study concludes that the shift to renewable energy in Sub-Saharan Africa is not yet an immediate driver of growth and may present economic trade-offs. Policy recommendations include pairing renewable investments with productivity-enhancing measures, prioritizing cost-efficient technologies, and implementing energy efficiency standards to mitigate adverse economic effects.