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Does renewable energy policy increase energy intensity? Evidence from the ECOWAS region

Maman Ali M. Moustapha (School of Economics, Wuhan University of Technology, Wuhan, China)
Qian Yu (Wuhan University of Technology, Wuhan, China)
Benjamin Adjei Danqauh (Kumasi Technical University, Kumasi, Ghana)

International Journal of Energy Sector Management

ISSN: 1750-6220

Article publication date: 13 September 2021

Issue publication date: 11 May 2022

154

Abstract

Purpose

The purpose of this paper is to assess how the Economic Community of West African States (ECOWAS) renewable energy policy (EREP) affects energy intensity using the difference-in-difference (DID) and the propensity score matching methods (PSM). Based on the current debates on renewable energy policies (REP) and due to the fact that energy efficiency has been a challenge for ECOWAS member states. The authors set up a framework to assess the EREP effect on energy intensity.

Design/methodology/approach

Using the DID and PSM approaches the paper assesses the effect of EREP on energy intensity. The following three different paths are considered: Path 1 tests the EREP effect on electricity access. Path 2 tests the use of renewable energy sources as a factor to enhance the energy intensity. Path 3 tests whether or not use of renewable energy deployment has the potential to raise the total percentage of primary energy supply. The principle is to investigate if and to what extend the EREP increases the energy intensity.

Findings

The results indicate that EREP has a significantly positive effect on increasing the percentage of energy intensity in ECOWAS member states that has implemented the policy, resulting for a large percentage of the population to electricity access in treated groups. Empirical estimation results largely corroborate the three paths’ hypotheses. The result indicated that the EREP has increased the percentage of electricity access throughout the region.

Originality/value

The paper explores a more appropriate framework to examine the effect of EREP and enriches the literature on the impact of REP by combining a policy evaluation approach (PSM-DID) method. This paper is the first to the knowledge to estimate the EREP effect by using a non-parametric approach. The majority of previous studies have focused on using case studies, exploratory analysis approaches and econometric methods.

Keywords

Acknowledgements

Declaration of interest: The author declares that no conflict of interest could be perceived as prejudicing the impartiality of the research reported. They declare also that they have no known competing financial interests or personal relationships that could have appeared to influence the research reported.

Citation

Moustapha, M.A.M., Yu, Q. and Danqauh, B.A. (2022), "Does renewable energy policy increase energy intensity? Evidence from the ECOWAS region", International Journal of Energy Sector Management, Vol. 16 No. 4, pp. 728-746. https://doi.org/10.1108/IJESM-12-2020-0023

Publisher

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Emerald Publishing Limited

Copyright © 2021, Emerald Publishing Limited

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