Abstract
This study examines the impacts of non-renewable energy (NRE) on quality of life (QOL) through the conditioning role of technology on a panel of 43 Sub-Saharan African (SSA) countries over the period spanning 1990–2019. For easy traceability of the channel through which NRE affects QOL, the aggregate measure of Human Development Index (HDI) was decomposed into three namely life expectancy, education, and per capita GDP (GDPPC). Four indicators such as coal, natural gas, petroleum oil (disaggregated), and fossil fuel (aggregated) capture NRE while ICT service exports are used to proxy technology. The empirical analyses are deployed on a two-step system generalized method of moments (SYS-GMM) with forward orthogonal and the Panel Fixed Effects. Similarly, the empirical analyses also consider four regions (viz: South, West, East, and Central) in SSA. The following findings are established. First, the indicators of non-renewable energy (NRE) are statistically significant and negatively signed when HDI, life expectancy, and GDPPC are the outcome variables but positive for education. Second, the role of technology is examined from two angles: unconditional (single) and conditional (interaction with NRE variables). Across all models, technology proves to be QOL enhancing. Third, while the test of nonlinearity in the NRE-QOL nexus is confirmed, the findings are also consistent with the sub-regional analyses.
Similar content being viewed by others
Notes
These SSA countries and together with their corresponding GDP growth rates include Ghana (8.3%), Ethiopia (8.2%), Cote D'Ivoire (7.2%), Djibouti (7%), Senegal (6.9%), and Tanzania (6.89) (World Bank, 2017).
This includes Seychelles (very high); Mauritius, Botswana, South Africa, and Gabon (high) while other are in the medium and low categories.
References
Acemoglu D, Aghion P, Bursztyn L, Hemous D (2012) The environment and directed technical change. Am econ rev 102(1):131–166
Ahuja, D.& Tatsutani, M. (2009). Sustainable energy for developing countries. S.A.P.I.EN.S. Retrieved from. http://journals.openedition.org/sapiens/823.
Ajide K, Ridwan I (2018) Energy consumption, environmental contaminants, and economic growth: The G8 experience. Appl Econ 51:58–83
Akinlo AE, Sulola AO (2019) Health care expenditure and infant mortality in sub-Saharan Africa. J Policy Model 41(1):168–178
Akinyemi O, Osabuohein E, Alege P, Ogundipe A (2017) Energy security, trade and transition to green economy in Africa. Int J Energy Econ Policy 7(3):127–136
Arellano M, Bover O (1995) Another look at the instrumental variable estimation of error-components models. J econometrics 68(1):29–51
Asiedu E, Gaekwad NB, Nanivazo M, Nkusu M, Jin Y (2015) On the impact of income per capita on health outcomes: is Africa different?. https://www.aeaweb.org/conference/2016/retrieve.php?pdfid=1019
Asongu SA (2013) How has mobile phone penetration stimulated financial development in Africa? J Afr Bus 14(1):7–18
Asongu SA, Odhiambo NM (2020) Foreign direct investment, information technology and economic growth dynamics in Sub-Saharan Africa. Telecommun Policy 44(1):1–14
Asongu SA, Odhiambo NM (2019) Insurance Policy Thresholds for Economic Growth in Africa. Eur J Develop. https://doi.org/10.1057/s41287-019-00234-2
Asongu SA, Boateng A (2018) Introduction to special issue: mobile technologies and inclusive development in Africa. J Afr Bus 19(3):297–301
Asongu SA, Nwachukwu JC (2016) The role of governance in mobile phones for inclusive human development in Sub-Saharan Africa. Technovation 55–56:1–13
Boateng A, Asongu SA, Akamavi R, Tchamyou VS (2018) Information asymmetry and market power in the African banking industry. J Multinatl Financ Manag 44:69–83
Buhari DĞA, Lorente DB, Nasir MA (2020) European commitment to COP21 and the role of energy consumption, FDI, trade and economic complexity in sustaining economic growth. J Environ Manage 273:111146
Burt E, Orris P, Buchanan S (2013) Scientific evidence of health effects from coal use in energy generation. School of Public Health, University of Illinois and Health Care Without Harm, Chicago and Washington
Dogan E, Altinoz B, Madaleno M, Taskin D (2020) The impact of renewable energy consumption to economic growth: a replication and extension of. Energy Econom 90:104866
Edo S, Okodua H, Odebiyi J (2019) Internet Adoption and Financial Development in Sub-Saharan Africa: Evidence from Nigeria and Kenya. African Develop Rev 31(1):144–160
Efobi UR, Tanaken BV, Asongu SA (2018) Female economic participation within formation and communication technology advancement: evidence from sub-Saharan Africa. S Afr J Econ 86(2):231–246
Eregha, P. B., & Mesagan, E. P. (2017). Energy consumption, oil price and macroeconomic performance in energy dependent African countries. П pиклaднaя экoнoмeтpикa, (2 (46)).
Flavin P (2019) State government public goods spending and citizens’ quality of life. Soc Sci Res 78:28–40
Fung MK (2009) Financial development and economic growth: convergence or divergence? J int money and finance 28(1):56–67
Gangadharan L, Valenzuela MR (2001) Interrelationships between income, health and the environment: extending the environmental kuznets curvehypothesis. Ecol Econ 36(3):513–531
Grossman GM, Krueger AB (1995) Economic growth and the environment. Q J Econ 110(2):353–377
Khandelwal V (2015) Impact of energy consumption, GDP & Fiscal deficit on public health expenditure in India: an ARDL bounds testing approach. Energy Procedia 75:2658–2664
Inglesi-Lotz, R., & Morales, L. D. D. C. (2017). The effect of education on a country’s energy consumption: Evidence from developed and developing countries. University of Pretoria, Department of Economics Working paper, 22.
Jones C, Vollrath D (2013) Introduction to Economic Growth, 3rd edn. Norton, New York, W.W
Liu L, Chen T, Yin Y (2016) Energy consumption and quality of life: energy efficiency index. Energy Procedia 88:224–229
Liu B, Matsushima J (2019) 201 Annual changes in energy quality and quality of life: A cross-national study of 29 OECD and 37 non-OECD countries. Energy Reports 5:1354–1364
Mazur A (2011) Does increasing energy or electricity consumption improve quality of life in industrial nations? Energy Policy 39(5):2568–2572
Nadimi R, Tokimatsu K (2018) Modeling of quality of life in terms of energy and electricity consumption. Appl Energy 212:1282–1294
Nkalu CN, Edeme RK (2019) Environmental hazards and life expectancy in Africa: evidence from GARCH model. SAGE Open. https://doi.org/10.1177/2158244019830500
Nordhaus WD (1992) Lethal model 2: the limits to growth revisited. Brook Pap Econ Act 2:1–43
Organization of Oil Producing Countries (2020). Nigeria facts and figures https://www.opec.org/opec_web/en/about_us/167.htm. (Accessed: 10/13/2020)
Pasten C, Santamarina JC (2012) Energy and quality of life. Energy Policy 49:468–476
Ridwan-Lanre I, Eregha PB, Sampson H (2019) Determinants of E-Banking Adoption in Lagos State. NDIC Quarter 34:1–18
Ridwan LI, Kazeem BA (2020) Trade facilitatfion, institutional quality, and sustainable environment: renewed evidence from Sub-Saharan African countries. J African Business. https://doi.org/10.1080/15228916.2020.1826886
Roodman D (2009a) A note on the theme of too many instruments. Oxford Bull Econ Stat 71(1):135–158
Roodman D (2009b) How to do xtabond2: An introduction to difference and system GMM in Stata. Stata J 9(1):86–136
Salahuddin M, Vink N, Ralph N, Gow J (2020) Effects of economic growth, foreign direct investment and internet use on child health outcomes: empirical evidence from South Africa. Develop Stud Res. 7(1):1–17
Shobande OA (2020) The effects of energy use on infant mortality rates in Africa. Environ Sustain Indic 5:100015
Stern DI (2004) The rise and fall of the environmental Kuznets curve. World Dev 32(8):1419–1439
Sulaiman C, Abdul-Rahim AS, Chin L, Mohd-Shahwahid HO (2017) Wood fuel consumption and mortality rates in Sub-Saharan Africa: Evidence from a dynamic panel study. Chemosphere 177:224–231
Tchamyou VS, Asongu SA (2017) Information sharing and financial sector development in Africa. J Afr Bus 18(1):24–49
Urhie E, Afolabi A, Matthew O, Osabohien R, Amoo EO, Ewetan O (2020) Economic growth, air pollution and health outcomes in Nigeria: a moderated mediation model. Cogent Soc Sci 6(1):1719570
Wang Q, Zhan L (2019) Assessing the sustainability of renewable energy by combining 3E model and RAGA-PP techniques: An empirical analysis of selected 18 European countries. Sci Total Environ. https://doi.org/10.1016/j.scitotenv.2019.07.170
Wang Z, Asghar MM, Zaidi SAH, Nawaz K, Wang B, Zhao W, Xu F (2020) The dynamic relationship between economic growth and life expectancy: Contradictory role of energy consumption and financial development in Pakistan. Struct Change Economic Dynamics 53:257–266
William C. (2020) The main oil producing in Africa. https://www.investopedia.com/articles/investing/101515/biggest-oil-producers-africa.asp. Accessed 12 July 2020
World Health Organization. (2011). Tackling the global clean air challenge. World Health Organization Media Center. Available at: http://www.who.int/mediacentre/news/releases/2011/air_pollution_20110926/en/index. html
Acknowledgements
The authors of this research article wish to appreciate the editors of this journal and the anonymous reviewers for providing valuable comments and suggestions which greatly improved the focus and quality of the paper. Authors receive no funding for the study.
Author information
Authors and Affiliations
Corresponding author
Additional information
Publisher's Note
Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.
Rights and permissions
About this article
Cite this article
Ibrahim, R.L., Julius, O.O., Nwokolo, I.C. et al. The role of technology in the non-renewable energy consumption-quality of life nexus: insights from sub-Saharan African countries. Econ Change Restruct 55, 257–284 (2022). https://doi.org/10.1007/s10644-020-09312-6
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s10644-020-09312-6