The Effect of Rural Urban-development Transformation on Electricity Consumption: An Econometric Analysis in South Africa

This paper analyses the impact of urbanization on electricity consumption in South Africa. The sample covers the period from 1971 through to 2013. Trade openness, Capital formation and labour are incorporated as intermittent variables. The Johansen co-integration method and the Granger causality test based on vector error correction model (VECM) are applied to determine this empirical analysis. The results show that the electricity consumption, urbanization, trade openness, labour and capital are co-integrated. It was established that urbanization and trade openness have a positive and a significant impact on electricity consumption. The VECM results reveal an existence of a unidirectional causality flowing from urbanization, trade openness, labour and capital to electricity consumption. The findings of this study bring a fresh perspective for the energy policy makers and urban planners in South Africa. Keywords: Electricity Consumption, Urbanization, Carbon Dioxide, South Africa JEL Classifications: C32, O55, Q4

The Relationship between Energy Consumption, Economic Growth and Carbon Dioxide Emission: The Case of South Africa

This paper investigates the relationship between energy consumption, carbon dioxide emission, economic growth, trade openness and urbanisation for South Africa. The annual data for the period between 1971 and 2013 is employed. The results of Johansen test of co-integration show that there is a long run relationship between energy consumption, carbon dioxide emission, economic growth, trade openness and urbanization in South Africa. The results for the existence and direction of Vector Error Correction Model (VECM) Granger causality indicates that there is bidirectional causality flowing between energy consumption and economic growth in the long run. The VECM results further found a unidirectional causality flowing from carbon dioxide emissions, economic growth, trade openness and urbanisation to energy consumption and from energy consumption, carbon dioxide emissions, trade openness and urbanisation to economic growth. These results posit a fresh perspective for creating energy policies that will boost economic growth in South Africa. Keywords: Energy consumption, Economic growth, Carbon dioxide emission, South Africa JEL Classifications: O13, Q4

The Impact of Electricity Price on Economic Growth in South Africa

This study explores the relationship between electricity prices and economic growth in South Africa within a multivariate framework over the period 1985-2014. The autoregressive distributed lag (ARDL) bounds test is implemented to determine long run relationship among the variables. The findings of the ARDL model suggest that there is a long run relationship between electricity supply, economic growth, electricity prices, trade openness, employment and capital. Specifically, the empirical findings reveal that electricity prices negatively affect economic growth while electricity supply, trade openness, capital and employment have a positive impact on economic growth. These findings bring a fresh perspective for creating electricity policies that will enhance economic growth in South Africa. Keywords: Economic growth, electricity prices, South Africa JEL Classifications: O13, O4, Q4