Energy Security, Trade and Transition to Green Economy in Africa

17 Pages Posted: 7 Dec 2015

See all articles by Opeyemi Akinyemi

Opeyemi Akinyemi

Covenant University

Evans Osabuohien

Covenant University

Philip O. Alege

Covenant University

Adeyemi Ogundipe

Covenant University

Date Written: December 7, 2015

Abstract

Environmental challenges have enhanced renewed focus on the need to drive the economy in an economically, socially and environmentally sustainable manner; therefore resulting to the emergence of the concept of green economy. In driving the economy towards a green growth path, the pattern of trade and security of energy will play a vital role. Energy (renewable) has been identified as one of the 6 sectors that would provide trade opportunities for export markets in the transition towards a green economy, particularly for developing economies, Africa inclusive. This paper assesses how the interaction of trade and green economy strategies could promote energy security in Africa for the period 1995 to 2014. The study examines this relationship in forty-two African economies and addresses energy security based on the IEA definition which captured energy security using the indicator of affordability (access) and sustainability (environmentally friendliness). The study situates its theoretical root in the EKC hypothesis and the energy ladder hypothesis and the estimation procedures were based on the dynamic panel approach using the System-GMM with collapsed instrument option. The study found that the indicators of green growth and trade were important determinant of energy security in Africa. This suggests that drive for greener growth agenda enhances provision of clean energy. Also, the present export structure and trade openness of African economies contributes inversely to energy access and environmental sustainability respectively.

Keywords: Energy security, Green economy, Sustainable development, International trade

JEL Classification: F18, Q27

Suggested Citation

Akinyemi, Opeyemi and Osabuohien, Evans S. C. and Alege, Philip Olasupo and Ogundipe, Adeyemi, Energy Security, Trade and Transition to Green Economy in Africa (December 7, 2015). Available at SSRN: https://ssrn.com/abstract=2700026 or http://dx.doi.org/10.2139/ssrn.2700026

Opeyemi Akinyemi

Covenant University ( email )

Canaanland
Km 10 Idiroko road
Ota, 24001
Nigeria

Evans S. C. Osabuohien

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Philip Olasupo Alege

Covenant University ( email )

P.M.B. 1023
Km 10 Idiroko road
Ota, Ogun State 234
Nigeria

Adeyemi Ogundipe (Contact Author)

Covenant University ( email )

Canaanland
Km 10 Idiroko road
Ota, 24001
Nigeria
+2348161927372 (Phone)

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