RENEWABLE ENERGY CONSUMPTION, GROSS DOMESTIC SAVINGS AND ECONOMIC GROWTH NEXUS IN WEST AFRICA

Abstract

As the trend in increasing demand for energy, energy security, increasing change in climates, and the rising rate of globalization and determination for economic growth continues to gain momentum, governments all over the world are paying more attention to the far-reaching impacts on ideas that can ensure growth in their various nations. The paper examines the relationship between renewable energy consumption, gross domestic savings and economic development in west Africa using panel data for 15 countries from 1997 to 2020. The long-run PMG analysis results show the variables' individual contributions. Renewable energy consumption was positively related to economic growth in the long run; gross domestic savings were only significant in the short run showing a positive relationship with economic growth, which is in line with Solow Swan's idea on the growth model in the short run but was not significant in the long run. The interaction of both GDS and REC was not substantial in the long run showing both variables only contribute individually to the economic growth in west Africa. ECM shows a 22% rate of speed of adjustment in case of disequilibrium in the short run. Suggestions was made for policy recommendations that can bhoost the impact of energy consumptions and domestic savings towards ecomomic growth in the country.